Bitcoin has in the last few hours smashed $11K. The current bull rage was triggered soon as Bitcoin climbed above $10K during the weekend and is set to reach $12K as its initial target. Coincidentally, a look at other markets shows that it’s assets considered safe-haven options that are performing well. All while the USD seems to build speed on its way down.
Gold has now hit its ATH at nearly $2,000 an ounce and last week we reported that Silver smashed its 6 year high. Bitcoin although has not hit any major milestone is expected to catch up soon.
Are Investors In Panic?
Last week the EU agreed on a more than $2T fund to cushion the force from the COVID-19 economic impact. The EU by doing so borrows a page from the U.S book on printing money. Its effect will be a massive deficit and inflation that will take years to curb.
The result of growing national debt and fears of a pandemic out of hand are already showing in the U.S. Recent reports confirm that the Dollar has sunk to a two year low. And the worst is not over yet. One Goldman Sachs analyst a few days ago predicted that the decline would accelerate and reach as much as 20% from recent highs. With the pandemic, escalating US-China conflict, and election in a few months, the future of the dollar looks is all but certain.
As the dollar suffers, the stock market is set to take a hit as well. In recent days, it has been seen to defy the odds as it continued to perform well despite a battered economy. Those watching closely say that this was a ‘manipulation’ by the banking system and they further understand there is only so much they can do to keep it up.
Stocks are looking shaky and a decline looks imminent. If Bitcoin continues to gain ground, it will finally decouple from the stocks. Recent correlated price moves put doubt in investors over the viability of Bitcoin as a safe haven asset. A breakout will be welcomed and will bolster reliance.