Mike Novogratz is a well-known individual in the financial and cryptocurrency world. He often shares market expectations and predictions. Every now and then, those predictions tend to come true.
Geopolitical Tension Rises
The price of bitcoin and gold is often affected by the same market circumstances. Rising geopolitical tensions tend to favor alternative investment vehicles. Following the killing of Iranian General Qassem Soleimani, tensions are rising between the US and Iran.
Under normal circumstances, this incident shouldn’t affect either bitcoin or gold. When looking beyond the norm, however, it becomes apparent that this event may be different from the rest. Mike Novogratz certainly seems to believe it will make a major impact.
The more I analyze this Iranian situation, the more bullish gold and $btc I become.
— Michael Novogratz (@novogratz) January 5, 2020
This airstrike on an Iranian official in Iraq is very peculiar. Sanctions have been imposed by the US on both of these nations. It is very likely these countries will band together to erode the role of importance America plays, from a financial perspective.
Market Volatility Ensues
One consequence of geo-political tensions is market volatility. The vast majority of the world’s economy relies on America’s “market strength”. If Iran and Iraq band together, there will be noteworthy market volatility in the weeks ahead.
Mike Novogratz expects this to be a bullish sign for bitcoin and gold. It may result in a brand new rally for both assets.
Other Wall Street heavyweights seem to lump these assets together in the same basket as well. That is a prominent sign, as bitcoin has often been shunned and rejected.
Another common factor bitcoin and gold share is the interest by financial institutions. Numerous banks around the world keep increasing their gold supply. Some are doing so in a more aggressive manner compared to others.
A similar situation occurs where bitcoin is concerned, according to Mike Novogratz. Institutions, and institutional investors, show an increasing appetite for cryptocurrency.
Certain bitcoin futures service providers can play a crucial role of importance. These futures contracts make bitcoin more accessible to these investors.