Bitcoin Reaches New Heights as the Dollar Faces Historic Decline
Bitcoin and precious metals are rising to record levels, alongside risk assets like stocks, indicating a significant economic transition. The US dollar is projected to have its worst year since 1973, according to analysts from The Kobeissi Letter.
The S&P 500 index has gained over 40% in the last six months, and Bitcoin (BTC) achieved a new record of over $125,000, while gold is near all-time highs at $3,880 per ounce. Analysts note that a strong correlation between gold and the S&P 500 signals markets are adjusting to a new monetary policy:
“There is a widespread rush into assets happening right now. As inflation rebounds and the labor market weakens, the Federal Reserve is cutting rates. The USD is now on track for its worst year since 1973, down over 10% year-to-date. The USD has lost 40% of its purchasing power since 2000.”
This analysis occurs against a backdrop of a US government shutdown and concerning employment data, which could positively impact Bitcoin prices.
Analysts agree new BTC all-time high is fueled by macroeconomic factors
The recent BTC surge is attributed to macroeconomic conditions, particularly the US government shutdown, according to Fabian Dori, Chief Investment Officer at Sygnum. This shutdown has disrupted operations in regulatory bodies, leading to heightened investor interest in Bitcoin as a reliable monetary asset due to declining faith in traditional finance structures.
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- #Economics
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- #UnitedStates
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