Bitcoins and precious metalsBTCAs the US Dollar (USD) heads for its worst performance since 1973, risk assets such as stocks are also on the rise. “generational” The Kobeissi Letter market analysts believe that there is a macroeconomic shift.
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 This is a sign of a shrinking labour market. interest rate cutsBTC prices are positively influenced by increasing concern about the erosion of the dollar’s value, as well as the escalating price for BTC.
Related: Bitcoin corrects from $125K all-time high: Where will BTC price bottom?
The macroeconomics are driving the new BTC high.
BTC’s rise to an all-time record high was driven by macroeconomic factorsFabian Dori is the chief investment officer of global digital assets bank Sygnum.
You can also find out more about the following: US government shutdown The shutdown, which began Wednesday, forced regulatory agencies to shut down their operations or operate with a minimal budget and staff.
It is important to note that the word “you” means a person. “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
