According to Guggenheim Partners' CIO Scott Minerd, as the chaotic price fluctuations in the cryptocurrency world push investors back into gold and silver, precious metals will begin to gain momentum again.
"At the moment, we see an outflow of money from cryptocurrencies, and people, as before, continue to look for means of protection against inflation, respectively, the ideal place to place their funds is gold and silver," said Scott Minerd.
Based on Minerd's forecast, in the future, the price of gold will be between $5,000 and $10,000 per ounce. Silver lags in price, but in percentage terms of movement, it will outstrip gold. He confirmed this, adding that now is a good time to invest in precious metals, as well as in gold mining companies.
Regarding cryptocurrency, Minerd said, "Despite the fact that bitcoin and ethereum have been tested by the test of time, it is likely that some other new cryptocurrency will dominate the digital asset space. With lower mining costs, and with less harmful emissions."
The announcement of the council to address the problems associated with energy-intensive cryptocurrency mining and proof of work has led to a small jump in prices in the crypto market again.
However, the total daily flow of bitcoins on exchanges is falling. The balance settles somewhere in the wallets, and it seems that the amount accumulated on the exchanges is decreasing. The decrease in flows on the exchanges suggests that the holders plan to sell off the asset.
According to CoinDesk, bitcoin and ether volumes are almost the same this week. And the change in volumes between the two assets, which is rare but becoming more common, just proves that traders in the crypto market are not focused only on BTC, as there are alternatives.
Investors are "blocking" cryptocurrency in DeFi to make a profit in exchange for liquidity on these platforms. And while the total value of DeFi, which includes bitcoin and stablecoins, is on the upward trend, it looks like the ether holders have decided to place their balances elsewhere.