With tensions escalating between the US and Iran, global markets are experiencing one of their most volatile days in recent years. Bitcoin’s sharp fluctuations and gold’s historic losses have raised questions among experts about whether the concept of a “safe haven” has changed.
Scott Melker stated that the markets were shaken by President Trump’s contradictory statements. He said that when Trump announced the start of peace talks with Iran, the S&P index gained $2 trillion in minutes, but when Iran denied the claim, the market experienced a total volatility of $3 trillion in just 56 minutes.
Bloomberg analyst Mike McGlone claimed that the cryptocurrency bubble has burst and that this bear market could last for years, even decades. He argued that gold and silver have ceased to be “stores of value” and have transformed into high-volatility, risky assets.
McGlone stated that a global recession is approaching, and while keeping oil prices above $100 would accelerate this process, he predicted that in the long term, oil could fall to $50.
Dave Weisberger, former CEO of CoinRoutes, argued that gold is difficult to transport through war zones due to its physical structure, while Bitcoin has performed better than gold during this crisis thanks to its “portability” feature.
He stated that the Fed cannot solve inflation caused by supply shocks by raising interest rates, and that current economic models are outdated.
He believed gold would return to the $5,500 level this year, but argued that Bitcoin would regain momentum as sellers dwindled.
CIO and macro strategist James Lavish described Trump’s unpredictable statements as a “negotiation tactic” to manipulate markets and people. He said investors are short on cash, so they are exiting assets like gold and silver where they were previously in profit.
Lavish said the Fed and the Treasury had no choice but to continue pumping liquidity to support the stock market, otherwise a deep recession would be inevitable.
*This is not investment advice.