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Bitcoin once again surpasses $87,000, pulling altcoins BNB, SOL, and XRP in its wake. This bullish move reignites debates about its status as a safe haven asset amidst global economic instability.
Bitcoin and Gold Advance in Tandem Amid Economic Uncertainties
The crypto market is experiencing an impressive rebound at the start of the week. The bitcoin price crossed the $87,000 mark during Asian trading, erasing all losses incurred since last Thursday.
This rise is accompanied by notable progress from other major cryptos: Cardano (ADA), Binance Coin (BNB), and XRP gained up to 1.5%, while Solana (SOL) surged 5.2% over the week.
This recovery comes in a context where gold, the traditional safe haven, also hits historic highs above $3,380 an ounce.
The correlation between the two assets reinforces the idea that bitcoin is regaining its status as “digital gold,” a narrative that had lost strength in recent years.
Although bitcoin has long been correlated with US equities, it now appears to follow more closely the trajectory of gold, which has served as a safe haven while stock markets declined.
Nick Ruck, Director of LVRG Research
Dollar Weakness Favors Alternative Assets
The US Dollar Index (DXY) has dropped to its lowest level in three years, pressured by potential interest rate cuts and political uncertainties.
The Trump administration could seek to replace Jerome Powell as head of the Federal Reserve and impose rate cuts, prompting investors to diversify their assets.
“Trade tensions and inflation fears are leading investors to turn to safe haven assets like gold and now bitcoin,” notes Jeff Mei, Chief Operating Officer at BTSE.
A rate cut increases the money supply, which devalues the dollar and potentially strengthens Bitcoin’s role as a safe haven.
Despite a drop of over 20% from its peak of $108,000 in January, bitcoin shows signs of resilience. This recovery aligns with the bold prediction of Robert Kiyosaki, author of “Rich Dad, Poor Dad,” who anticipates bitcoin reaching $1 million by 2035.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
