- Gold is almost back to its highs. Time for Bitcoin to get on its horse and ride
- USD on longest winning streak since 2012
After yesterday’s jump above $6,600, today Bitcoin surged yet again to almost $6,900. From yesterday’s lowest level of about $5,700, the world’s leading cryptocurrency has jumped 20.4%.
Not just bitcoin but global markets also rose on the optimism of a strong US response. European stocks rose broadly while Asia stocks recorded similarly strong performance with the futures market suggesting Wall Street would open strongly as well on Tuesday.
Markets have been reacting to the Federal Reserve’s unlimited QE on Monday. Other markets also signaled improved investor confidence as the price of the 10-year Treasury bond fell, sending yields higher. Gold prices soared over 4% to $1,603.78 an ounce.
Gold is almost back to it highs. I believe it’s going much higher. Let’s go $BTC. Get on your horse and ride. Same thesis.
— Michael Novogratz (@novogratz) March 24, 2020
With “everything on the table” USD Soares
The US dollar initially slipped after the Fed announced fresh measures to supply liquidity into the funding markets but it is back on course for a 10th day rising, the longest winning streak since 2012.
“Given the big picture view, the dollar is still in a fantastic position that will be difficult to dethrone, no matter what people say,” said the chief executive officer at Eurizon SLJ Capital.
The dollar continues to rise while the Fed has basically announced an unlimited money supply to help the markets. Fed President James Bullard who recently suggested unemployment could reach 30% and GDP could fall 50% also said, “everything is on the table.”
In the recent interview, President of the Federal Reserve Bank of Minneapolis Neel Kashkari said there is “an infinite amount of cash at the Federal Reserve” further clarifying, “That’s the authority that (Congress has) given us: to print money and provide liquidity into the financial system.”
The Federal Reserve says there is an “INFINITE AMOUNT OF CASH”
This is quite literally the reason bitcoin was created. pic.twitter.com/JTE9TVoSr0
— Vis (@Vis_in_numeris) March 23, 2020
Biggest Argument for Bitcoin
And this is the biggest argument for Bitcoin yet. “Think of it less in terms of the ‘price of bitcoin’ and more in terms of the ‘exchange rate between BTC & USD.’ Now consider what happens as the supply of bitcoin remains fixed (21M) while the supply of dollars becomes infinite,” said Bitcoin enthusiast Russell Okung, an NFL player.
Welcome to a world with infinite amount of money, wait, not for you!
— CZ Binance 🔶🔶🔶 (@cz_binance) March 24, 2020
And that’s why bitcoin enthusiasts, investors, and traders are extremely bullish on Bitcoin. “Bullish on USD liquidity squeeze and then I’m ultra bull on gold/crypto,” said pseudonymous former crypto trader Crypto Cobain.
If Trump re-opens the country and now we have 0% rates and unlimited QE, it’s going to be a race between the Dow and Gold to 100,000
— Quoth the Raven (@QTRResearch) March 23, 2020
In a world of zero percent interest rates and unlimited QE, trader Ledger Status believes, “Bitcoin the only one that’ll hit $100k in this race.”