After the previous week’s pacifist Jackson Hole note from the Chair of the Federal Reserve Jerome Powell, stocks appear set to hover at an all-time high on Monday.
The Fed chief reported an incremental easing of support. In addition, the markets will be keeping watch on some significant data due to come out this week that could offer some information on how slow or fast the central bank progresses.
The Institute for Supply Management’s manufacture report is due to come out midweek, accompanied by non-agricultural wages this Friday.
Energy is also in the limelight, for Monday, as a result of one of the strongest hurricanes to ever hit the US mainland. Recently, a billionaire investor stated that he is of the opinion that investors should not be wasting their money or time on one progressively popular asset class that he considers a bubble.
John Paulson, the president, and asset manager of US investment company Paulson & Co. informed Bloomberg Wealth in an interview posted on Monday that cryptocurrencies, irrespective of where they are trading today, will at one point lose their worth. That is once the enthusiasm around them dies down, or liquidity goes dry, they will amount to nothing. Paulson then went on to state that he would not recommend anyone to invest in digital currencies.
According to Paulson, Bitcoin is not even worth investing in in the short term due to its extremely volatile nature. He instead recommended for investors to invest in bullion, because of the limited amount of gold. Paulson instead sees investors withdrawing money from traditional income and cash as inflation continues to be on the rise, then moving towards the only liable destination, i.e., gold.
While billionaires like Paulson reject the thought of cryptocurrencies ever taking over, there are some that have had a change of heart as well. Towards the end of 2020, Ray Dalio, founder, and co-chairman of Bridgewater Associates softened up to Bitcoin after also branding it a “bubble” in 2017.
Business moguls constantly changing their views about cryptocurrencies, giving rise to FUD among investors, as a result, maybe one of the main reasons why digital currencies keep being subject to plummets in value.
Bitcoin managed to reach 50K USD in the previous week but then fought to maintain that level. This was despite Powell’s comments on Friday weighing on the dollar and giving cryptocurrencies a boost. Bitcoin was seen trading at approximately 47K earlier this Monday.