U.S Dollar Index Experiences 3-Year Depreciation, Gold Reaches All-Time High, Bitcoin Surpasses $87,000 Mark
The US Dollar Index (DXY) has plummeted to a three-year low as the world's primary currency takes a beating under the strain of mounting global trade tensions ignited by President Trump.
That's right, folks! The DXY, which compares the greenback against a group of six leading currencies, has slipped to 98.23 - its lowest since March 2022, according to TradingView.
Peter Schiff, a gold investor, remarked on April 21, "The dollar Index is below 98.5, a new three-year low. This is getting serious."
DYX Takes a Nose-Dive
Since the beginning of this year, the Index has plummeted over 10%, thanks to Trump's trade tariffs and a waning sentiment for the United States among investors. It's worth noting that a similar downturn was observed between October and December 2022, when it fell from 114 to 101 as the dollar depreciated. This recent slide, however, has been deeper, and more pain is predicted if trade deals aren't hammered out pronto.
Did you know the euro is now trading above $1.15? The dollar has also sunk below 141 Japanese yen and 0.81 Swiss francs, marking a 14-year low, as observed by Schiff.
While the dollar is drowning, gold prices have surged to a new high of $3,380 per ounce. Since the start of this year, the usually sedate precious metal has skyrocketed a staggering 29% in dollar terms as investors scramble to safe havens amidst the currency chaos.
BTC Soars to Four-Week High
Meanwhile, Bitcoin has shown signs of detaching from tech stocks and seemed to realign with gold. On Monday morning in Asia, Bitcoin surged 2.5%, retaking a four-week high of $87,550 during trading. Despite a temporary dip, Bitcoin is maintaining its gains instead of bouncing back off resistance. However, it needs to surpass the $88,500 level it reached in late March to see a larger leap into the $90K zone.
Alex Krüger, an economist, commented, "I'm open to the possibility that it may finally be happening. Bitcoin taking on its final form. Either that or somebody is levering up on longs for some other reason." Krüger also suggested that investors in Asia view Bitcoin as a safe haven, while those in the U.S. consider it a speculative asset.
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So there you have it, folks! The United States dollar is on a downward spiral, and gold, as well as Bitcoin, are reaping the benefits. Time to invest wisely!
- Despite the US Dollar Index (DXY) plummeting to a three-year low, President Trump's trade tariffs have led to a 10% decrease in the Index since the start of this year.
- Peter Schiff, a gold investor, comments that the dollar Index is at a new three-year low and warns of further depreciation if trade deals aren't hammered out swiftly.
- As the DXY takes a nose-dive, the euro is now trading above $1.15, and the dollar has sunk below 141 Japanese yen and 0.81 Swiss francs, reaching 14-year lows.
- With the dollar weakened, gold prices have surged to a new high of $3,380 per ounce, experiencing a 29% increase in dollar terms since the start of the year.
- Meanwhile, Bitcoin has shown signs of detaching from tech stocks, seemingly realigning with gold, and has soared to a four-week high of $87,550 during trading, with a potential for further growth if it surpasses the $88,500 level.
- Alex Krüger, an economist, suggests that investors in Asia view Bitcoin as a safe haven, while those in the U.S. perceive it as a speculative asset, adding to the ongoing debate about its true nature.
