- Bitcoin inched near $10,000 while Gold hit a seven-year high after Jerome Powell’s warning about the U.S. growth hit by the coronavirus pandemic.
- Powell expects economic recovery but only until the end of next year – or until researchers develop a vaccine.
- Analysts see a growth in demand for Bitcoin as the financial crisis deepens.
Bitcoin and Gold climbed higher on Monday after Federal Reserve’s Chairman Jerome Powell warned that the U.S. assets could experience more hardships from the coronavirus pandemic.
Economic activities that depend on larger social gatherings, including travel and entertainment, could suffer the most, Powell said in an interview with CBS’s 60 Minutes. He also noted that it would be hard for the public to become active money spenders unless researchers develop a vaccine, adding it would lead the U.S. economy on a path to a slower recovery – until 2021.
“Assuming there is not a second wave of the coronavirus, I think you will see the economy recover steadily through the second half of this year,” he stated.
Safer Havens Rally
Both Bitcoin and Gold have surged this year as the spread of the coronavirus pandemic baffled economic growth, boosted unemployment, and prompted the Fed and the U.S. government to introduce trillions of dollars worth of stimulus packages.
Gold behaved like a traditional safe-haven against the impending economic crisis, while Bitcoin – more or less – surged on similar sentiments. On Monday, the benchmark cryptocurrency’s spot rate inched towards $10,000 a token after rising 2.02 percent.
At the same time, spot gold rallied 0.9 percent to $1,760.14 an ounce, its highest since October 2012.
Analysts Bullish on Bitcoin and Gold
Safe-haven bugs criticize stimulus packages as a…