The bitcoin (BTC) market, stocks and gold are showing increasingly red numbers as investors flee to the US dollar.
The US dollar hit its highest value in 20 years against the euro last week. This milestone occurs at the same time as the ounce of gold it fell at $1,737, its lowest level in 10 months since September last year. And it is expected that it may continue to decline, according to the predictions of the specialists.
Given the bearishness of the markets in general, Matt Simpson, the senior market analyst at City Index, argues: “A move down to $1,720 is on the cards.” Although gold is not the only one that is being affected this season.
The stock market in 2022 registered the worst first semester since 1970, while bitcoin fell 70% from its all-time high 8 months ago. According to the CriptoNoticias calculator, the cryptocurrency, which reached almost USD 69,000 in November 2021, is now worth USD 20,300.
The bitcoin price is near the low in more than a year of $17,600 that it hit three weeks ago. Its movement shows the low demand that exists in the current macro context, as well as what happens with gold and stocks.
The dollar rises while bitcoin, gold and stocks fall
The growing strength of the dollar in this scenario reflects that investors they are fleeing to the American currency to shelter its value against inflation. Its increase shows that the policies of the United States government are achieving for the moment that its currency is not devalued.
The increase in the dollar may also have been driven by the demand it has in other countries. Above all, in those that these days have suffered a greater devaluation of their currency and an increase in inflation, such as Europe, Argentina, Colombia and Chile.
Also, this context shows the bearish sentiment out there in the near future of gold, the stock market and bitcoin. Although the long-term bullish predictions for the main cryptocurrency continue to be among the most enthusiastic.