The expert explains the recent rise in Bitcoin and other assets



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The investment market is in a very positive phase in early November.

In addition to Bitcoin (BTC) and other cryptocurrencies, the stock market is booming, as are assets like gold and silver.

However, the phenomenon has a justification: the “destruction of money”, according to Daniel Lacalle, PhD in economics.

Money is destroyed by central banks

Investors don’t appear to be worried about the outcome of the presidential election.

This is because, regardless of who wins, the market risks being flooded with liquidity.

Lacalle, referring to the present moment, explained the situation:

@dlacalle_IA
@dlacalle_IA

“Everything is green on my screen: stocks, gold, silver, commodities and Bitcoin. Today is the return of the whole event, ”Edward Harrison said on Twitter.

“Markets are betting on massive central bank interference, regardless of elections, economic results or yields. The asset rally is a reflection of the destruction of money, ”Lacalle said in response to Harrison.

In the commentary, the economist refers to the stimulus packages that have been approved by the Central Bank of the United States (Fed).

The Fed injected trillions of dollars into the US economy in 2020 in an effort to contain the economic crisis caused by Covid-19.

However, according to Lacalle, the US government’s action could help inflate the price of several assets.

Bitcoin, Ethereum and gold are on the rise in 2020

Some crypto assets are managing to overcome the current moment of political and economic instability.

Therefore, BTC is already quoted at R $ 87,099 at the time of writing, with a 12% appreciation in just 7 days.

Furthermore, IBOV has recovered some of the recent losses and is at 99,950 points.

The ounce of gold, in turn, is priced at US $ 1,957 (R $ 10,861.34) and has risen by 5% over the past five days.

In addition, other assets such as Ethereum (ETH), Chainlink (LINK) and silver have also recorded positive performances in recent days.

Also read: Investing in Bitcoin is easy if you learn here

Read also: Ethereum will reach 500 US dollars in 2020, says the expert

Also read: Little-known tokens appreciated up to 3,000% in 2020



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