Marco Landscape Bullish for Gold, Bitcoin

Marco Landscape Bullish for Gold, Bitcoin

The greenback and Chinese yuan fell dramatically with a possible Trump win early Wednesday. It looks like a Biden win would deal a much deadlier blow to the dollar while shoring up the yuan.

This is due to the ongoing trade war with China led by the Trump administration. Indeed, a Biden win looks bullish for the broader Asian market.

The off-shore Chinese yuan rate rose to its strongest levels of $6.60 per dollar since July 2018. America’s GDP is still 3.5% below its pre-pandemic level, while China is projecting a complete recovery from the coronavirus-induced economic crisis. 

The euro also gained 1.57% since the beginning of the U.S. election on Nov. 3. 

Further, the UK’s sterling also gained against the dollar on the news of an £850 million ($1,112,505,500.00) buyback program by the Bank of England. The exchange rate of GBP per USD rose by 0.77% on a daily scale to $1.3. 

Nevertheless, the COVID-19 situation has not improved in the UK as the region plunges into its second lockdown. Hence, hedges against the pound are still intact. 

Bitcoin just broke above $15,000, posting 13.3% gains since the beginning of the U.S. elections. In fact, BTC bulls have led stock markets and commodity markets since last month. Bitcoin vs. SPX vs. Gold price on a four-hour interval. Source: TradingView

Despite the prevailing recession, the stock markets and Bitcoin look primed for a continued bull run. No matter who wins, many predict another round of monetary stimulus, promoting a risk-on environment. 

JP Thieriot, the CEO of Uphold shared with Crypto Briefing:

“The uncertainty created by the current political climate is just more fuel for Bitcoin’s growth. With a clear winner yet to be determined for US President, the likelihood of a gridlocked congress, and the probability of another stimulus package (now that both sides won’t be worried about the other getting credit before an election) – people will be further drawn to devaluation-benefited havens like Bitcoin and gold in order to preserve value. We’re going to keep seeing BTC price highs.”

Bitcoin is UP $BTC
Global stocks are UP $SPY
Precious metals are UP $GC_F
Raw material prices are UP $ZS_F

The common theme?

The DEMISE and DEVALUATION of the U.S. Dollar pic.twitter.com/tI8aXFbA8y

— Peter Brandt (@PeterLBrandt) November 5, 2020

Moreover, the rise in gold over the U.S. dollar weakness is another positive signal for Bitcoin.

Bitcoin’s non-correlation with the financial markets is proving to be an inflation hedge and a haven against global uncertainty. 

taken from: https://cryptonews.net/en/news/analytics/411566/

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