Even In Warsh’s World, Bitcoin Will Be Dumped for Gold
All that glitters.
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The prospect of Kevin Warsh as the next chair of the Federal Reserve may have sapped the appetite of those trading on a sugar high. But what remains unbroken is the investing world’s curiosity about alternative assets. Investors will continue to ditch Bitcoin for gold as they hedge against inflation risks.
It’s clear from recent price actions that both Bitcoin and gold are products of global liquidity conditions. After news broke that Warsh, the most hawkish among a short list of candidates, is poised to head the Fed, gold had its worst day in more than four decades on Friday, and continued to slide during Asia hours on Monday. Over the weekend, Bitcoin tumbled below $76,000, resisting levels seen during last April’s selloff.