Crisis-driven rally? Bitcoin and Gold soar as inflation looms and political heat rises
Gold Joins Bitcoin in Safe-Haven Surge
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As the United States grapples with mounting debt and inflation concerns, investors are flocking to assets that have served as safe havens in uncertain times, Bitcoin and gold, as per a report.This week, Bitcoin surged past $123,000, climbing more than $10,000 in just a few days and hitting a new all-time high, as reported by GuruFocus. It's already up 14% for July, driven by growing anxiety over the US economy and the government's ballooning fiscal deficit, according to the report. A $316 billion shortfall in May has rekindled fears over long-term sustainability, prompting many to seek safety outside of traditional markets, according to the GuruFocus report.According to trading expert Keith Alan, the price action fits a textbook "Cup and Handle" pattern, a signal of continued momentum, as per GuruFocus. But beyond technicals, it's deeper economic worries that seem to be driving the move, concerns over increased Treasury issuance, a wavering US dollar, and rising calls for Federal Reserve Chair Jerome Powell to step down, according to the report.ALSO READ: Stock rally sparks bold words from trading legend — his unexpected take is going viral Alongside Bitcoin, gold is also gaining ground as a safe-haven asset, with both markets reacting to a tense mix of political pressure, inflation jitters, and monetary uncertainty, as per GuruFocus.Inflation data released this week didn't ease any of those concerns, as the Consumer Price Index for June showed a 2.7% increase year over year, which is slightly higher than May's 2.4%, as per the AInvest report. Core inflation, which excludes food and energy, rose to 2.9%, according to the report.The crypto market wobbled just before the inflation report came, with Bitcoin briefly dipping below $116,000, as per AInvest. But it quickly bounced back, climbing past $118,000 once the numbers were out, with traders still betting on a potential rate cut in September, but the next round of data, specifically the Producer Price Index, could either reinforce or upend those expectations, according to the AInvest report.ALSO READ: No Reddit, no visa? Indian's US entry blocked after failing to share account details While Bitcoin was not the only cryptocurrency moving higher, even Ethereum rose over 6% in the past 24 hours, XRP, Binance Coin (BNB), Solana, and Dogecoin also saw gains, as reported by AInvest. XRP increased 3%, BNB by 2.4%, and both Solana and Dogecoin gained 5%, according to the report.Because people are nervous about inflation, debt, and political turmoil—and Bitcoin is seen as a safe place to park money during uncertainty, as per the GuruFocus report.Gold, like Bitcoin, is considered a hedge during times of inflation or market instability.
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