Bitcoins and precious metalsBTCThe 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,” The analysts added that this correlation is unusual between risky assets and safe havens, indicating that markets now are pricing in the risks. “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 That signals a weakening of the labor market interest rate cutsBTC prices are positively influenced by the dollar’s eroding values and the increasing concern about its value.
Related: Bitcoin corrects from $125K all-time high: Where will BTC price bottom?
The macroeconomics are driving the new BTC high.
BTC’s rally up to new highs was driven by macroeconomic factorsFabian Dori has been the Chief Investment Officer at Sygnum, a global digital asset firm.
It is important to note that the word “you” means a person. US government shutdown That began on Wednesday forced bureaucracies and regulatory agencies to close their doors or work with minimal resources and no staff.
You can also find out more about the following: “political dysfunction” Dori, a Cointelegraph reporter, said that the closure has sparked investor interest in BTC, a technology used to store value, because trust in traditional financial institutions is waning.
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Source: cointelegraph.com
