US dollar can’t tempt investors anymore - Good news for Bitcoin

The fact that the largest digital currency is increasingly doing the very opposite of the dollar is bad news for the latter. Gold and crypto attract new investors who would otherwise very clearly go to the safety of US dollar investments.

Bond market

There has been a lot of talk about the correlation between stocks and cryptocurrencies since President Donald Trump announced his global tariffs for “Liberation Day” on April 2nd.

But the big surprise last week wasn’t the stock market going down, which was expected due to the bad news from the White House. The real surprise came from the US bond markets.

Whenever the stock market has a bad day, the US bond markets normally rise by a very small percentage. US Treasuries are the ultimate safe haven and are considered even better than gold. The profit percentage you get on them is normally very low, even over ten years.

But last week something very strange happened. The bond market fell along with the stock markets, and that was new.

After all, that means that money is flowing out of America to other markets, looking for non-American investments.

Since then, Bitcoin has risen from a low of $74,000 to a high of around $84,000, or an almost 15% increase, while the dollar fell by around 5% against major fiat currencies. Gold also reached a new record in the meantime.

By now, even Bloomberg has noted that the rise in Bitcoin during that period is particularly bad news for the US dollar. No idea how this will end, but it is certainly interesting.