In this exclusive interview, Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, asks Gareth Soloway, Chief Market Strategist at VerifiedInvesting.com, to dissect the gold and Bitcoin price surge to unprecedented levels. Soloway expertly analyses the technical aspects driving these market movements, while also projecting their future trajectories. Delving deeper, he elucidates on the overarching narratives shaping these developments and offers insights into his macroeconomic outlook, expectations from the Federal Reserve, and assessments of the banking sector.
For a short summary of the video’s key insights, continue reading, or watch the complete interview here
Michelle: Bitcoin and Gold have hit all-time highs on the same day. What do you make of that?
Gareth: There’s a risk on the environment in the markets that’s driving Bitcoin. We’ve seen Nvidia, SMCI – the stock market making new all-time highs. In fact, the NASDAQ has been really running but we’ve seen a lot of the other sectors in the SNP lagging technology, so there’s this risk on the environment getting into the highest risk type plays that’s been driving the stock market in Bitcoin with money flow. There’s also been excitement about the spot ETF. Then you have gold on the other side where you basically had the central banks loading the boat for a long period of time which is why gold hasn’t pulled back from the all-time highs.
Michelle: Bitcoin soared past the $69,000 high today that it hit in November of 2021 followed by quite a dramatic pullback of about 14%. Then Bitcoin settled at around $63,000. Talk us through that move.
Gareth: What you saw was this culmination of greed and people chasing a move that was already up. Just looking at the last week, we’re up from $50,000, we got that breakout above the spot ETF level of $49,000 and the momentum of that carried it up to this all-time high. It’s also known as a technical double top where there’s notoriously going to be players that are selling into that level or shorting it. When you get to this point of euphoria it gets every last buyer in so that when those sellers and shorters start pounding it down there’s no one left to buy and that’s where you get these dramatic drops.
Michelle: We have a potentially positive event: the halving. Bitcoin’s become a mainstream news topic and everybody’s talking about it again. What do you think that means for the price?
Gareth: Bitcoin itself with the halving is going to continue to keep the hype going so I would be very sceptical that we will see anything bigger than a pullback to about that $49,000 to 50,000 level. Keep in mind today we were at 69 and we went to 59 so… Bitcoin’s pullbacks are the equivalent of Apple moving like 2% in a day – that’s a big move for Apple. Bitcoin moves 10% a day, that’s the equivalent. I think you have to just be aware that yes, it’s a big pullback in percentage terms but it’s not outlandish for what Bitcoin does on a normal basis.
Michelle: In terms of hodling mentality, Bitcoin is becoming more of a mainstream asset, with traders more likely to take profits in and out and move in and out of positions. Does that mean we’re going to have more volatility?
Gareth: The more players that get in, the less they’ll get shaken out by whipsaw in the market. I know we know that there’s a lot of hodlers out there that just want to hold on, but a lot of those hodlers are smaller players that are just holding less than, or one Bitcoin, and those are the types of mentalities that they can get swayed very easily by big news. That either makes them overly bullish and buy in at highs or actually exit at lows. As you draw in, and the more big money that gets involved, the less likely they’ll get shaken out on hype essentially. So, what we should see is Bitcoin gets less and less volatile over time.
Watch this compelling video now and experience Gareth’s enlightening insights on Bitcoin’s price.
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