Year-to-date, bitcoin (BTC), the leading digital currency by market cap, has witnessed a staggering increase of over 100%, sparking curiosity about the duration of its upward trajectory. In a Thursday interview with Gareth Soloway, the head market strategist at inthemoneystocks.com, the expert delved into the potential longevity of this rally. Soloway also touched upon the upcoming gathering of the U.S. Federal Reserve and the ascent of 10-year treasury yields to a pinnacle unmatched in the last 16 years.
Bitcoin’s Longevity Examined by Market Strategist Gareth Soloway; Anticipates Gold Surge
On a Thursday marked by a downturn in U.S. equities, resulting in a sea of red across the stock market, precious metals, and the crypto markets stood resilient, weathering the storm with grace. Gareth Soloway, the chief market strategist at inthemoneystocks.com, engaged in a thorough discussion about the U.S. and global economies with Michelle Makori, the leading anchor and editor-in-chief at Kitco News.
During their exchange, Soloway pinpointed the Federal Reserve as the market’s current focal point, speculating on whether the central bank will opt to increase the federal funds rate. He underscored the noteworthy development of the 10-year treasury yields surging past 5% for the first time in a span of 16 years.
Emphasizing the significance, Soloway remarked that a 5% yield on the 10-year treasury “is very, very important to the psychology of the market.” Echoing Bill Gross’ prediction, he anticipates a recession could unfold by the year’s fourth quarter, highlighting a stark contrast in consumer confidence across different income brackets.
Soloway observed, “I think you look at the economy right now and you could argue that half the population has already been in a recession.” He also speculated on the Federal Open Market Committee (FOMC) meeting scheduled for the following week, suggesting the Fed might opt to halt its rate hikes, given the evident market stress.
“They see the stress that’s gone on in the markets,” the analyst added.
Shifting the focus to bitcoin (BTC), Soloway speculated on the potential approval of a spot bitcoin exchange-traded fund (ETF), cautioning that it might trigger a substantial sell-off. While acknowledging bitcoin’s impressive performance, he questioned its resilience against a possible 15-20% asset sell-off in the Nasdaq, expressing concern that a 35% plunge in the stock market could eventually instill fear and panic among bitcoin holders. Soloway declared:
You’ll probably get [an ETF] approval by year-end or early in 2024. If bitcoin is still up here, you may not go higher. It may be already factoring in the approval. It’s very possible it could be a sell on the news.
Looking ahead, Soloway pondered the future narratives that could propel bitcoin’s price post-ETF approval. He acknowledged the growing acceptance of BTC as a legitimate asset class by “big money,” paralleling it with gold. In the event of tumultuous times ahead for stock markets, he envisions a surge in demand for bitcoin, predicting that the next resistance during this run-up might hover around $47,000 per unit.
“Many of these ETF institutions have probably been accumulating for the last couple of months, knowing that eventually an approval will come. And so, there may not be as many buyers for the spot ETF,” Soloway said.
Nevertheless, it’s within the realm of possibility that BTC might plummet to the $15,000 bracket, especially if the stock markets take a nosedive and widespread panic ensues. “Panic is panic; it’s the biggest emotion we have, it’s the most intense, and if we did have that scenario, you could still see bitcoin dip,” Soloway confided in Makori. In addition to monitoring bitcoin, Soloway has set his sights on gold, expressing optimism about its potential to surge by the close of this year or in 2024. He asserted, “We’re talking at least the potential for $2,400 to $2,500 gold in 2024,” wrapping up the analysis with his gold forecast.
What do you think about Soloway’s predictions? Share your thoughts and opinions about this subject in the comments section below.
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