Why You Shouldn’t Ignore Bitcoin and Gold in 2025
As we dive into 2025, investors are looking for ways to safeguard their portfolios against inflation, fiscal uncertainty, and global economic shifts. According to Jan van Eck, CEO of VanEck, two assets stand out as indispensable hedges: Bitcoin (BTC) and gold. In VanEck’s 2025 outlook report, van Eck recommends maintaining or increasing exposure to these assets, citing their proven resilience in times of economic turbulence.
The Case for Gold and Bitcoin
So, what makes gold and Bitcoin such attractive options? Van Eck points to inflationary pressures, fiscal uncertainty, and de-dollarization trends as key drivers of bull markets in both assets. With foreign central banks increasingly purchasing gold and a growing shift away from the US dollar in global trade, gold’s current bull market is showing no signs of slowing down.
Meanwhile, Bitcoin has been making headlines with its recent surge past the $100,000 mark, continuing its bull cycle following the halving event in Q2 2024. Van Eck projects that BTC could reach $150,000 to $170,000 during this cycle, driven by its increasing adoption as a “store of value” asset.
A Three-Year Bull Market for Bitcoin?
Historical patterns from prior halving events suggest that Bitcoin is in the midst of a three-year bull market, positioning it as a pivotal asset for long-term wealth preservation. While van Eck acknowledges the potential for volatility, particularly in gold, he remains optimistic about the long-term prospects for both assets.
Analysts Agree: Bitcoin and Gold Are Hedges Against Uncertainty
Van Eck’s vision aligns with other analysts, who see Bitcoin and gold as essential hedges against systemic financial risks and uncertainty. Geoffrey Kendrick, global head of digital assets research at Standard Chartered, has highlighted BTC as a hedge for systemic financial risks, while BlackRock has noted that Bitcoin is resilient to “black swan” macro events, such as banking system crises and geopolitical disruption.
What This Means for Your Portfolio
So, what does this mean for your investment strategy? In short, it’s essential to consider the long-term prospects of Bitcoin and gold, even amid price corrections. By maintaining or increasing exposure to these assets, you can better safeguard your portfolio against inflation, fiscal uncertainty, and global economic shifts.
The Bottom Line
As we navigate the complexities of the global economy, it’s clear that Bitcoin and gold are assets worth paying attention to. With their proven resilience and increasing adoption, they offer a compelling hedge against uncertainty. So, will you be adding Bitcoin and gold to your portfolio in 2025?
Sources:
* VanEck’s 2025 Outlook Report * Standard Chartered’s Digital Assets Research * BlackRock’s Investor Letter
Source: Cryptoslate.com
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