Crypto enjoys a poll bump
Crypto believers say an escalating pandemic and sliding dollar amid ever looser monetary policy will spur more gains as investors seek stores of value
Bitcoin’s surge during US election week has pulled cryptocurrency performance further ahead of major asset classes this year.
The Bloomberg Galaxy Crypto Index of digital currencies, including Bitcoin, is up about 120% in 2020, exceeding gold’s near 30% jump. The crypto index has rallied 11% during a three-day streak since election day, a period when the dollar fell to a 2018 low.
Crypto believers say an escalating pandemic and sliding dollar amid ever looser monetary policy will spur more gains as investors seek stores of value. Sceptics argue crypto markets have a history of wild swings and are merely riding a tide of liquidity.
“Gold, silver and Bitcoin have worked like a dream in the weak US dollar environment and has attracted huge client interest,” said Chris Weston, head of research with Pepperstone Group. Further substantial dollar weakness would encourage “an even more constructive view” on gold and Bitcoin, he added.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:6 Nov 2020, 11:50 PM IST
- Top Gainers
- Top Losers
- 52 Week High