{"id":387385,"date":"2019-06-25T11:11:45","date_gmt":"2019-06-25T11:11:45","guid":{"rendered":"https:\/\/ktsl888.com\/?p=387385"},"modified":"2024-06-11T13:44:36","modified_gmt":"2024-06-11T13:44:36","slug":"bitcoin-soars-beyond-11400-and-outperforms-gold-amid-geopolitical-tensions","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/bitcoin-soars-beyond-11400-and-outperforms-gold-amid-geopolitical-tensions\/","title":{"rendered":"Bitcoin Soars Beyond $11,400 and Outperforms Gold Amid Geopolitical Tensions"},"content":{"rendered":"

Bitcoin has touched a new yearly high above the $11,300 level amidst rising geopolitical risks in the Middle East.<\/p>\n

Iran President Hassan Rouhani in a TV speech today called the White House officials “mentally retarded<\/a>” after US President Donald Trump signed an executive order to put sanctions on the office of the Supreme Leader Ayatollah Khamenei. Mr. Trump said that the additional restrictions were in response to the shooting down of a US drone last week by the Iranians. The Middle East nation, in its defense, stressed that the “US spy drone” was flying over its restricted airspace at the time of the shooting.t<\/p>\n

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Rouhani’s latest statements stirred investor sentiments across the global market. The US dollar index, which measures the greenback against a basket of six major rival currencies, plunged to its lowest in three months to 95.943, now down 1.7 percent across the last five sessions. Stocks remained mostly flat.<\/p>\n

Selling sentiment in the dollar market also accelerated after the Federal Reserve last week hinted multiple rate cuts in 2019. The dovish stance appeared amidst the ongoing trade struggle between the US and China. Investors are now waiting for the meeting between President Trump and its Chinese counterpart Xi Jinping at the G20 Summit in Osaka this week.<\/p>\n

Bitcoin, Gold Peaking<\/h2>\n

Meanwhile, so-called haven asset Bitcoin settled a local swing high of $11,389 on Tuesday at 0618 UTC. That brought its net quarter-to-date gains close to 175 percent, one of the highest noted amidst the ongoing\u00a0geopolitical and\u00a0macroeconomic tensions.<\/p>\n

\"bitcoin,<\/a>
Bitcoin Price Soars above $11,300 in Latest Bullish Move | Image Credits: TradingView.com<\/figcaption><\/figure>\n

Gold, Bitcoin’s giant rival in terms of market capitalization, also posted a six-year high of $1,438 per ounce in choppy late trading. Naeem Aslam of Think Markets projected the yellow metal at $1,550 per ounce, believing negative yield debt (when investors lose money by holding US bonds) would be a significant catalyst.<\/p>\n

“This makes perfect sense, of course, no one likes to have negative-yield debt,” wrote<\/a> Aslam. “The safer bet is the shining metal. Given the current monetary policy adopted by the European Central Bank and the Federal Reserve bank, it is likely that the gold price may actually touch $1550 in the next few months.”<\/p><\/blockquote>\n

\"gold,<\/a>
Chart Displaying Strong Correlation between Gold Price and Negative-Yield Debt | Source: The Guardian, Think Markets<\/figcaption><\/figure>\n

Trace Meyer, another market expert but that of cryptocurrencies, too noted a strong correlation between the US 10 year yield and bitcoin, stating that its underlying weakness is prompting both gold and bitcoin to surge higher. He added:<\/p>\n

“With Gold and BTC rallies, perhaps look at USD’s problems like yield curve, interest rate, trade wars, tariffs, etc. Plus, Chinese bank failures, negative yielding Euro debt & emerging markets getting whacked.”<\/p><\/blockquote>\n

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With $gold<\/a> & $BTC<\/a> rallies, perhaps look at $USD<\/a>'s problems like yield curve, interest rate, trade wars, tariffs, etc. Plus, Chinese bank failures, negative yielding Euro debt & emerging markets getting whacked.#Bitcoin<\/a> perfectly designed for this environment. \ud83d\udc4d @TuurDemeester<\/a> pic.twitter.com\/sAhECZ3Hl7<\/a><\/p>\n

— Trace Mayer (@TraceMayer) June 23, 2019<\/a><\/p><\/blockquote>\n