Cryptocurrencies Rise with BTC as the U.S. Dollar Stumbles and Gold Hits New Highs
Crypto traders were finally celebrating another rally after the recent halving rally stalled and led to low volumes in the market. Strong stock prices and an improving economy saw a lack of demand for safe havens and BTC was trapped near the $9,200 level. This all changed over the last week as the U.S. dollar came under pressure in the last week and gold surged to a new all-time high.
The dollar selling was caused by improved conditions in foreign economies such as the Eurozone. As the U.S. struggled with new virus cases, Europe saw a 1 trillion euro budget approved, alongside a 750 billion euro bailout fund, leading to gains in the single currency.
There are other political issues weighing on the greenback with uncertainty over the upcoming election result and another stimulus package. Stock markets have also dipped in the last days and investors may pull money out of stocks until the election result is confirmed and the spending outlook for government is clear.
The cryptocurrency market has been buzzing with the growth of decentralized finance (DeFi) solutions in the last weeks alongside the regulatory greenlight for the major U.S. banks to begin offering custody solutions for cryptocurrencies. The recent BTC rally could see an extension into year-end if the dollar continues its fall towards the November election.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.