The US Dollar Index Falls to a 3-Year Low, Bitcoin and Gold Prices Surge
Against the backdrop of escalating global trade tensions, the US Dollar Index (DXY) has fallen to its lowest level in three years, gold has reached a historic high, and Bitcoin has also surpassed $87,000. This phenomenon indicates that as the dollar depreciates, the appeal of value-preserving assets like Bitcoin and gold to investors is increasing.
According to TradingView data, the US Dollar Index has dropped to 98.13, the lowest level since March 2022. Gold's staunch advocate Peter Schiff pointed out that the US Dollar Index has fallen below 98.5, hitting a three-year low, and the situation is becoming increasingly serious. Meanwhile, due to Trump's trade tariffs and weakened investor confidence in the US, the index has declined by more than 10% since the beginning of this year.
At the same time, gold prices reached a new all-time high on Monday, hitting $3,380 per ounce. As investors flock to safe-haven assets during a currency crisis, this typically slow-moving precious metal has surged by 29% since the beginning of this year.
Additionally, observers noted that Bitcoin seems to have decoupled from tech stocks and re-established a positive correlation with gold. BTC surged nearly 3% during Monday's trading session in Asia, briefly reclaiming a four-week high of $87,800.
As of the time of writing, the BTC trading price is $87,400, not yet rebounding past the resistance level. However, it needs to break through the $88,500 level reached at the end of March to further push past the $90,000 range.
Economist Alex Krüger also noted that Asian investors see Bitcoin as a safe haven, while US investors view it as a speculative risk asset.
In summary, this scenario of dollar depreciation and rising asset prices not only highlights the uncertainty of the global economy but also reflects investors' enthusiasm for safe-haven assets.
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