Bitcoin & Gold Surge as Dollar Plummets to Three-Year Low
The US Dollar Index has plummeted to a three-year low, sparking market fears after hints from former US economic advisor Kevin Hassett suggested President Trump might still consider removing Fed Chairman Jerome Powell. Unusually, Bitcoin has not followed its typical pattern of falling when the dollar weakens, indicating a potential shift in its role as a store of value. Gold, meanwhile, has surged to its 55th all-time high in the past year, with Bitcoin joining the rally, suggesting a weaker dollar and increased uncertainty ahead.
The recent developments come amidst ongoing tensions between the US and China, as well as growing economic uncertainty. These factors are seen as the driving force behind the recent gains in both Bitcoin and Gold. Notably, Bitcoin has bucked its usual trend, not falling in line with the weakening dollar. This could signal a 'regime change' in Bitcoin's role, potentially evolving into a more reliable store of value.
Gold, too, has been on a tear, reaching a record high of $3,385 and increasing by nearly 2% within 24 hours. This marks its 55th all-time high in the past 12 months. The surge in gold prices follows a statement made by former President Donald Trump on Truth Social, which also led to an increase in Bitcoin prices. Bitcoin itself increased by about 3% and reached $87,500, gaining 4.5% over the past week.
The unusual behaviour of Bitcoin, coupled with the record-breaking surge in gold prices, suggests a potential shift in market dynamics. With the US Dollar Index at a three-year low and uncertainty on the rise, investors seem to be seeking safe havens. As the situation evolves, market watchers will be keeping a close eye on these developments to gauge the potential impact on global markets.
