Popular cryptocurrency analyst Michaël van de Poppe has recently suggested that so-called hard assets, including cryptocurrencies, gold, and silver, are all currently “extremely” undervalued when compared to the U.S. dollar and equities, meaning we could be on the “edge of a big bull cycle” for these assets.
In a post shared on the microblogging platform X (formerly known as Twitter) with his over 700,000 followers, van de Poppe noted these hard assets, including commodities, are a “must-have in the portfolio” given their potential to enter this “big bull cycle.”
I've not been discussing this much lately.However, the valuations of #Crypto & Gold, Silver are extremely low compared to the Dollar & Equities. It seems like we're on the edge of a big bull cycle in hard assets overall, commodities included. Must-have in the portfolio. pic.twitter.com/tQwCqAqJHl
— Michaël van de Poppe (@CryptoMichNL) May 22, 2024
Notably the stock market’s benchmark index, the S&P 500, has recently hit a new all-time high after rising more than 27% in a year, while BTC also moved to a new high above $73,500 before enduring a strong correction that saw it test the $58,000 mark before recovering, to now trade at $70,000.
Meanwhile, other metals, including gold and silver, have also been surging. Earlier this month, gold topped the $2,450 mark for the first time ever, and silver moved to an 11-year high above $32 as well.
Precious metals have been boosted by growing geopolitical tensions amid the ongoing Russian invasion of Ukraine and the war between Israel and Hamas. Moreover, these hard assets saw a boost after lower-than-expected inflation data in the U.S. boosted expectations the Federal Reserve could soon start cutting its benchmark interest rate.
Gold, in particular, has been seeing growing demand from central banks throughout the world, with China driving a significant part of that demand. Aside from central banks, demand for gold in China also comes from everyday investors collecting it in the form of “beans” meant to store value.
In the cryptocurrency space, a recent surge was triggered after the U.S. Securities and Exchange Commission abruptly requested that the exchanges that want to list and trade these funds update key filings related to these products, fueling speculation that the regulator is considering approving these products.
Featured image via Pixabay.