The hunt for a hedge is on.
With the Federal Reserve keeping its benchmark interest rate near zero on Thursday and more fiscal stimulus on the horizon as a final presidential election outcome draws near, there’s a lot for investors to consider when buying into certain asset classes, one trader said.
“You still have the S&P 500 trading under recent highs. The 10-year yield, more or less, has been sideways,” JC O’Hara, chief market technician at MKM Partners, told CNBC’s “Trading Nation” on Thursday.
“I’m actually looking at another asset class that I think will work tremendously well within this current environment, and that’s bitcoin,” he said. “What I like about bitcoin is it’s actually breaking out.”
Cryptocurrencies tend to act well going into and coming out of elections on the whole, but bitcoin’s technicals are particularly strong this time around, O’Hara said.
“When we looked at a chart of bitcoin, we could see a very strong technical setup here that we believe is setting up for further upside,” he said.
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https://www.cnbc.com/2020/11/05/bitcoin-gold-trading-low-interest-rates-and-a-friendly-fed.htmlAs we said many times everywhere on the forum, now every trader in town is trying to find its luck trading bitcoin. The difference for me is that I don't think Bitcoin will go up because of some TA but more because of what it can offer as a protocol and store of value.
