Goldman Sachs predicts that economies will shrink by 35% when Gold reaches its 7-year high

Bitcoin's Hashrate has collapsed 40% mysteriously

Bitcoin (BTC) and Gold are fast becoming safe haven assets of choice because new data predicts that developed economies will shrink by 35% in the second quarter.

According to annual figures from Goldman Sachs cited by Bloomberg On April 14, the second quarter of 2020 will witness the biggest three-month economic recession in history.

Goldman: Europe should print more money

This narrowing scale will overcome the 2008 global financial crisis - previously keeping a record for a time frame.

In a note sent to customers, Goldman analyst Jan Hatzius emphasized that workers who return to work are still at risk of a new coronavirus infection. Instead, he argued, central banks should pump more money into the economy around the world.

"The response in Europe needs to be strengthened, through greater quantitative and unconditional quantitative easing than 'anything' requires commitment to the integrity of the euro area," he said. write.

"Emerging economies will need more help from the rich world."

That view is the strong metric used by Bitcoin supporters to criticize governments. Unlimited quantitative easing is increasing unemployment and deflation, Max Keiser argued in the latest episode of the TV show Keizer Report on Tuesday.

For Keiser, the net result of combating the coronavirus economic crisis with money printing is a new form of inequality. Named the "new feudal regime", it will create a wealthy class and a peasantry, he warned.

The government's acquisition of large amounts of bonds is an example of how easy it is for lawmakers and banks to acquire value at hand. In the Keiser Report, CEO of hedge fund Morgan Creek Digital, Mark Yusko, described the US Federal Reserve's current bond buying activities as "illegal".

Gold makes 14% profit in a week

Meanwhile, despite facing the problem at the start of its own due to the coronavirus crisis, gold is recording remarkable success.

On Tuesday, gold prices reached a seven-year high of $ 1,720 - closing monthly gains of 14%. This precious metal is currently about $ 100 below its all-time high - which was set in 2011.

3-month chart of Bitcoin and gold. Source: Skew
3-month chart of Bitcoin and gold. Source: Skew

At the same time, Bitcoin rebounded to erase its short-term losses in response to a stock market crash on Monday, with the aim of reclaiming the $ 7,000 mark.

Commenting on the recent performance of both gold and Bitcoin, Cointelegraph Market analyst Scott Melker wrote on Twitter:

“Gold is in a rising channel - since 2015. THIS is how you break out of the rising channel with strength and show that every ascending channel is not a‘ bear flag. ’Bitcoin and gold. You don't have to choose. ”

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According to CoinTelegraph
Translated by ToiYeuBitcoin


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