Both Bitcoin and Gold market value has significantly increased during the pandemic.
Popular market analysts and investors led by Peter Schiff unanimously agree that Bitcoin (BTC) and Gold stand a better chance of thriving as the global reserve currency, the US dollar, depreciates to yearly lows. Both BTC and Gold market value have significantly increased during the pandemic, whereby the latter has reached a new all-time high while the former is retesting its ATH.
Their correlation with the United States dollar has been deduced both from statistical figures and also different market analysis. Notably, they have shown a direct correlation, whereby when the dollar falls the two leading assets depreciate in value and vice versa.
It is expected that Bitcoin may get to reach a new all-time high in 2021. With the United States seeking to approve a new stimulus package to support the struggling economy, global investors are likely to flee to better store-of-value like Bitcoin and Gold.
“When you get a report that a bipartisan stimulus deal can get done after hopes have been dashed, it’s just another reason to bid risk up and sell the dollar,” John Doyle, vice president of dealing and trading at Tempus, told Reuters.
Not only has the United States dollar depreciated against the two major assets, but also against other global currencies like the Swiss franc.
“The U.S. dollar is now trading at its lowest level against the Swiss franc since Jan. of 2015. This is a harbinger of things to come. The franc is leading the way, but other currencies will soon follow. 2021 may be the worst year ever for the U.S. dollar, at least until 2022,” Schiff noted in a tweet.
Bitcoin is highly manipulated and in a bubble. So anything can happen short-term. But I'm sure my long-term forecast will pan out.
— Peter Schiff (@PeterSchiff) December 2, 2020
Bitcoin was trading around $19,190.61, up 0.5% in the past 24 hours according to the metrics provided by CoinGecko. Notably, Bitcoin has added over 162% in the past one year, and it is now up 41.6%, 7.6% and 2.3% in the past 30 days, two weeks and seven days respectively.
Bitcoin still leads the crypto industry with a market capitalization of around $356,193,018,406, whereby its past 24 hours trading volume stands at $26,603,252,563. Gold on the other hand was trading around $1840, down approximately 3.58% in the past 30 days according to the market analysis by Kitco.com. Notably, Gold is up around 24% in the past year.
The United States dollar currency index (DXY) was trading around 90.896, the lowest since 2018.