Bitcoin recently surged up to the $11000 mark and it has been speculated that it will keep growing until it reached the $28000 range.
However, recent reports have shown that Bitcoin has a better hedge against USD than gold. Bitcoin has also reached unprecedented highs in terms of the S&P 500 Index.
Gold, on the other hand, has shown negative correlation with the dollar with some very rare exceptions. Meanwhile, Bitcoin and the dollar have been uncorrelated with each other until recently.
Bitcoin made up the losses it suffered during the meltdown while the dollar has depreciated against its main fiat rivals and gold.
The market has discounted the U.S. government’s handling of the COVID-19 crisis.
High mortality rates, almost 50 million unemployed and unprecedented multi-trillion dollar stimulus packages, have not increased confidence in the nation’s economy in the eyes of the investors.