Bitcoin and precious metals (BTCThe US dollar is set to have its worst year in history, with the stock market and other risky assets also rising. “generational” The Kobeissi Letter’s market analysts claim that macroeconomic changes are occurring.
The S&P 500 stock market index is up over 40% in the last six months, BTC hit a new all-time high of over $125,000 on Saturday, and gold is also trading at all-time highs — $3,880 per ounce at the time of this writing — nearing $4,000, Kobeissi Letter wrote.
“The correlation coefficient between gold and the S&P 500 reached a record 0.91 in 2024,” Analysts wrote that the unusual correlation of safe-haven and risk assets shows that markets have now priced in an increase. “new monetary policy,” Kobeissi added:
“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.”
It was a time of massive US government shutdown. downward revisions of US jobs numbers This is a sign of a weakening labour market. interest rate cutsBTC prices are positively influenced by the deterioration of the Dollar and the increasing concern about its value.
Related: Bitcoin corrects from $125K all-time high: Where will BTC price bottom?
Analysts concur that the macroeconomic forces are behind BTC’s new all-time record high.
BTC’s rally up to new highs was driven by macroeconomic factorsFabian Dori Fabian Dori was the Chief Investment Officer at Sygnum, a global digital asset firm.
It is important to note that the word “you” means “you”. US government shutdown That began on Wednesday forced bureaucracies and regulatory agencies to close their doors or work with minimal resources and minimum staff.
You can also find out more about the following: “political dysfunction” Dori said Cointelegraph that investor’s interest has been rekindled by the shutdown, which is leading to a renewed focus on BTC.
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Source: cointelegraph.com
