Although Bitcoin and Gold prices have recently declined sharply, it is a known fact that their chances of rally are not completely over. In particular, the coronavirus epidemic and its effects on the already crumbling economic order were the main factor that sparked the rise for BTC and Gold.
Dan Tapiero, co-founder of DTAP Capital, stated that the prices of digital and physical gold, which had been stagnant for a while, could be seen again. Tapiero, who implies that the current macroeconomic trend is in favor of BTC and Gold, frequently states that he is a long-term Gold investor.
US Despair for the Benefit of Bitcoin and Gold Prices
Drawing attention to the statement made by the Federal Reserve, Tapiero actually thinks that everything is in the middle. According to the experienced name, keeping interest rates at low levels due to the commercial real estate crisis seems a necessary move. Noting that this market in the USA is worth 16 trillion, Tapiero shot that a bear market has been seen in this sector for the first time since the late 80’s.
Emphasizing that 8 trillion dollars flew with a 50% price decrease, the famous name is assertive that the interest rates will be kept in the 0% band to prevent further decline.
An entire asset class redefined almost overnight by covid/#WFH.
Total value of all US #commercialrealestate is $16 trillion.
Now entering largest bear mkt since late 80s?
50% price drop wipes out $8 tril.
Major econ drag/knock on effects huge.
— Dan Tapiero (@DTAPCAP) September 14, 2020
Of course, keeping the interest rates in the zero band is definitely a positive development for Bitcoin and Gold. This time, people can speed up the purchase of long-term Gold or digital gold, Bitcoin, instead of treasury bonds or direct deposit returns. Perhaps this development could lead to an increase to the $ 20,000 band for BTC again.