The forex market is experiencing a wave of new currency dynamics as the US dollar shows signs of volatility. In the middle of this alternate hedge, assets like Bitcoin and Gold rally higher on the radar, dividing user sentiment into diverse branches of interest.
Also Read: China-Russia Crypto Pact: A New Threat to US Dominance?
Why Is The US Dollar Weakening?
Source: Shutterstock
The US dollar is currently at 100.4, down 0.04% in the last 24 hours. The volatile value of the US dollar has primarily been spurred by the Federal Reserve’s recent decision to cut rates by 50 basis points.
The rate cut decision has compelled the US dollar to encounter bearish waves of change as investor sentiment pivots towards alternate assets. To elaborate further, a rate-cut decision often makes dollar-centric assets appear less lucrative to investors, directly impacting the US dollar’s value.
When the Federal Reserve lowers or cuts rates, the US Treasury bonds or other USD-denominated assets appear weaker to foreign investors. This development batters the value of the US dollar, compelling the currency to document a bearish ebb and flow in its price value.
Also Read: Solana’s 7% Surge: Is Now the Time to Invest?
Why Are Bitcoin and Gold Rallying?
Bitcoin is thriving at $64K. The asset is up 1.39% in the last seven days and has caught up to its earlier price pace. At the same time, gold has spiked a massive rally, breaching $2,600. AUX is heading towards a new high of $3,000, with analysts forecasting the above level to be claimed before the end of this year.
As per a recent post uploaded by The Kobeissi Letter, alternate assets like gold and bitcoin strike massive rallies whenever the US dollar weakens, the phenomenon denotes how investor sentiment shifts to alternate assets like gold and bitcoin during great financial distress.
Bullish forecasts of “Uptober” flooding the market may signal Bitcoin’s historic price rise to $80K, with Gold hitting the coveted $3,000 mark. At the same time, the US dollar may continue to face volatility, bolstering other assets’ prospects.
Bitcoin Price Analysis (October To December)
According to CoinCodex, Bitcoin may hit the $88K level by the end of October 30, 2024.
Image: CoinCodex
BTC may then surge towards claiming a new high of $101 by November 30, 2024.
Image: CoinCodex
By the end of December, Bitcoin may have stabilized to maintain its historic new price peak of $101K.
Image: CoinCodex
“According to our current Bitcoin price prediction, the price of Bitcoin is predicted to rise by 99.36% and reach $ 128,200 by March 29, 2025. Per our technical indicators, the current sentiment is Bullish while the Fear & Greed Index is showing 61 (Greed). Bitcoin recorded 18/30 (60%) green days with 5.69% price volatility over the last 30 days. Based on the Bitcoin forecast, it’s now a good time to buy Bitcoin.”
Image: CoinCodex
Also Read: Ripple: XRP To Surge 49% To Hit $0.9 Mark: Analyst Explains
