Bitcoin Looks Beyond $10.5K as Global Bond Yields Collapse Below 1%
Gold is $30 away from reaching an all-time high above $1,920, for the first time in 9 years. It’s up 30% in 4 months. Demand for alternative stores of value is evidently increasing as investors fear inflation. In the long-term, it could really benefit bitcoin as well. — Joseph Young (@iamjosephyoung) July 24, 2020
The cryptocurrency now trades north of $10,000, especially ahead of the Fed’s meeting on July 28-29. Wall Street expects the central bank’s chairman, Jerome Powell, to remain dovish. As a result, yields may keep heading downwards. On the other hand, the US government will finalize the second round of $2 trillion-stimulus to help the unemployed and businesses through the pandemic-induced lockdown. That would keep more pressure on the US dollar due to oversupply.
The fundamentals suggest that Bitcoin would retest $10,500, its YTD high, once again in the third quarter. Meanwhile, veteran trader Jonny Moe thinks the cryptocurrency would fly beyond the said level. “Over $10.5 is where the real action starts but BTC is already looking pretty exciting,” he said Monday. “This slow-grindy action is a lot more productive than a rapid impulse.” Bitcoin was trading at $10,251 at the time of this writing.
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