During an episode of Closing Bell: Overtime on CNBC, the CEO of Van Eck Associates expressed his belief that the current uncertainty in the banking system is temporary and that both bitcoin and gold could be at the beginning of a new bull cycle that could last for several years.
However, Jan Van Eck believes that overall, the year 2023 will likely be a sideways market. He explained that liquidity problems are currently of a short-term nature and that he believes history is often more complex than it appears at first glance.
According to him, by December, the trend will remain relatively steady, resulting in a year of lateral movement.
Although the price of cryptocurrencies rose at the beginning of 2023 due to the monetary policies implemented by the authorities, Van Eck argues that this is not an indication of a bull market.
He attributes the surge in technology stocks in January to the injection of additional liquidity from China and other Asian countries.
The actions of the US Federal Reserve and the support that banks receive are not permanent solutions to the current problems, but rather a way to balance the financial sector to avoid an overly bullish or bearish market.
Van Eck emphasized that it is worth having faith in bitcoin amidst volatility and financial failures, pointing to the coin’s lower volatility compared to other cryptocurrencies.
A recent market review by Bits.media discussed how the decision of the US Federal Reserve led to moderate growth in the cryptocurrency market.