Keep An Eye On Bitcoin

 

Bitcoin is on a tear-away rally. Its performance over the last year has been outstanding and it has outperformed most asset classes by a wide margin. It is probably the only asset class that beats both gold and silver in 2016. Why is it soaring? People look at alternate asset classes when their confidence in traditional assets fades. Since the beginning of the year, both the stock and the commodity markets have been on a roller coaster ride, catching both bulls and bears on the wrong foot. The world's macroeconomic situation does not give confidence to the astute investor, as evidenced by the return of legendary investor George Soros, who has come out of retirement to short overblown markets. Similarly, other hedge-fund managers are stocking up on gold, which supports our view that a ‘financial crisis’ is right around the corner. The Brexit results have also opened up a possibility of another round of easing by central banks around the world. The Bank of England will most likely resort to an easing schedule during the next meeting, which will be followed by the European Central Bank and the Fed. Japanese Prime Minister Shinzo Abe is likely to push the Bank of Japan to announce another round of easing. Since the last financial crisis, the combined central banks have pumped massive amounts of money into the system and they continue to do so at a rapid pace. Source: http://www.investing.com/analysis/keep-an-eye-on-bitcoin-200142512