Gold & Bitcoin: Correcting for the Same Reasons

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Gold and bitcoin have both been correcting during 2014 and many believe it is due to the same reasons. In this video by Bloomberg News, Scarlet Fu and Matt Miller discuss various reasons for why both of these investments have been seeing lower prices this year. Some of the reasons cited include the Federal Reserve’s tightening monetary policy, a recovering U.S. economy and a strengthening U.S. dollar.

Gold and bitcoin are both looked at as places for investors to transfer their money in times of crisis. They can also be seen as a hedge against the U.S. dollar and unstable economies. During 2014 the economy has been showing signs of improvement which has led to the Federal Reserve’s tapering of quantitative easing. The Chairman of the Fed Janet Yellen has also discussed the potential for an interest rate increase in mid-2015 which also has investors optimistic about the state of the economy.

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