Bitcoin’s safe heaven status is proven as the Dollar saw crashing
The Federal Reserve of the United States raised interest rates over the year to stop inflation from worsening. The value of the US dollar went up a lot as a result. The bitcoinscircuit.com makes it possible for anybody to invest and profit from bitcoins.
There has been a lot of trouble in markets worldwide because of money worries. Even though Bitcoin has followed chiefly changes in the economy, its remarkable rise over the past week has shocked many traders and brought attention to how unpredictable the times are.
Is the strength of the US dollar only temporary?
Over the weekend, Kiyosaki told the 2.1 million people who follow him on Twitter that the “English pound died this week.” After the GBP fell against other currencies, the Bank of England (BOE) bought bonds quickly to calm the markets. After the GBP fell against other currencies and the BOE took emergency action, Kiyosaki sent his tweet.
The price of Bitcoin, which was $19,305 when this article was written and published by Coingecko on Monday, has increased by 3% in the past week.
The author says that people who want to make money should think about buying Bitcoin
Kiyosaki’s latest opinion on the USD comes after he said that the global markets were likely to experience a “catastrophic collapse” and that investors should put more money into cryptocurrencies to prepare for the dollar’s eventual replacement.
At the beginning of this year, he said that the dollar would fall apart and that the Federal Reserve and the Treasury Department were hurting the dollar. On Tuesday morning, many more people wanted to buy bitcoin than before. This helped the price of the most valuable cryptocurrency go back over $20,000 for the first time in three weeks.
At the same time, Kaiko Research says that its returns are becoming more and more like the price of gold. In the last 30 days, it has done better than it has in more than a year. This makes me wonder if investors now see it as a safe place to put their money.
Bitcoin has become like gold because investors see it as a way to protect themselves from inflation
Since the beginning of the year, the value of bitcoin (BTC-USD) has dropped by a huge 58%. This means that its market cap has lost more than $500 billion. Between April and July, most of this collapse took place. The significant drop was partly caused by the central bank’s decision to raise interest rates to stop inflation.
Bitcoin is trading at $20,100 right now, a 4% increase for the day. The price has stayed the same in the last week, but in the last three months, it has gone up by more than 4%.
Analysts think the more vital link between bitcoin and gold could be a good sign for investors who want to diversify their portfolios. But they are not yet ready to say that the fact that bitcoin is a risky asset that trades closely with stocks is essential because of this pattern.
Gold, on the other hand, has not done very well against inflation over the last year. In March, the price of gold hit a new all-time high of $2,040 per ounce. It went up by 11% from January to March.
Yahoo Finance says that as of Tuesday morning, it had dropped 14% since the beginning of the year and was down 5% since then. The most recent report on inflation in the US, for August, came in at 8.3%, which was higher than expected.
Even though bitcoin isn’t a haven, it has done better than gold and stocks over the past three months. It’s possible that some investors are looking at it as a way to avoid the volatility of other assets.
Over the past year, Bitcoin has done better than gold and more like the Nasdaq than gold. Even though this correlation has “fallen slightly” over the last two weeks, it is still the best way to tell how well the digital currency is doing. The director of research at Kaiko, Clara Medalie, says that Yahoo Finance spoke to her.