Gold and Bitcoin rally as traditional economic indicators falter

Quick Take

In the current economic climate characterized by the worst inflation over four decades and skyrocketing US government debt exceeding $33 trillion, attention gravitates toward hard assets such as Gold, Silver, and Bitcoin.

US Debt Clock: (Source: usdebtclock.org)
US Debt Clock: (Source: usdebtclock.org)

With rate cuts anticipated in 2024 and the DXY recording its second-worst month since 2021, the DXY is under an enhanced spotlight.

CME FedWatch: (Source: cmegroup.com)
CME FedWatch: (Source: cmegroup.com)

Gold is not only holding firmly above $2,000 but is also striving for all-time highs, a phenomenon accompanied by an unusual trend of rising alongside US yields, a pattern unseen since the 70s and 80s.

Gold vs US10Y: (Source: Trading View)
Gold vs US10Y: (Source: Trading View)

Bitcoin, often called ‘digital gold,’ is likewise experiencing substantial growth, up 120% year-to-date. Such patterns suggest a potential shift toward alternative asset classes in the face of prolonged economic uncertainty.

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Source: https://cryptoslate.com/insights/gold-and-bitcoin-rally-as-traditional-economic-indicators-falter/