Global markets are experiencing their most volatile days in recent years amid rising tensions between the United States and Iran. Bitcoin’s wild swings and gold’s historic decline have led experts to question whether the concept of a “safe haven” has changed.
Scott Melker said the market was spooked by President Trump’s contradictory statements. He noted that when President Trump announced the start of peace talks with Iran, the S&P index rose $2 trillion in minutes, but when Iran denied that claim, the market experienced a total swing of $3 trillion in just 56 minutes.
Bloomberg analyst Mike McGlone argued that the crypto bubble has burst and this bear market could last for years or even decades. He argued that gold and silver have ceased to be “stores of value” and have turned into volatile and risky assets.
McGlone predicted that with a global recession looming, keeping oil prices above $100 would accelerate this process, but in the long term oil prices could fall to $50.
Dave Weisberger, former CEO of CoinRoutes, argued that while gold is difficult to transport through conflict zones due to its physical structure, Bitcoin performed better than gold during the crisis due to its “portability” feature.
He said the Fed cannot solve inflation caused by supply shocks by raising interest rates and that the current economic model is outdated.
He believes gold will return to the $5,500 level this year, but argued that Bitcoin will regain momentum as sellers reduce.
CIO and macro strategist James Rabish called President Trump’s unpredictable statements a “bargaining tactic” to manipulate markets and the public. He said investors are running out of cash and are exiting assets such as gold and silver that were previously profitable.
Lavish said the Fed and Treasury have no choice but to continue providing liquidity to support the stock market or a deep recession is inevitable.
*This is not investment advice.
