USD, Global Stocks Appear Shaky While Bitcoin and Gold Soar; Decoupling at last?

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Stock Markets See Wild Price Swings - Here's How It Compares to Bitcoin
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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.

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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.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.