As the U.S. dollar’s value slides, prices are suddenly rising for just about everything priced in dollars.
That includes bitcoin, which shot up some 13% on Monday for its biggest gain in almost three months. Prices soared past levels reached in February, prior to the pandemic-induced sell-off, reaching a new 2020 high of $11,180.
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Joe DiPasquale, CEO of the cryptocurrency hedge fund BitBull Capital, told First Mover in an email that the latest move up appeared “in sync” with gold’s climb in recent days to a new record. Bitcoin is seen by many digital-asset analysts as a hedge against inflation and currency debasement, similar to the way investors in traditional markets have historically used gold.
“Bitcoin sprung into action,” DiPasquale said.
It’s a remarkable development in the bitcoin market, where investors, as recently as last week, were despairing that the oldest and largest cryptocurrency had been stuck in a range between $9,000 and $10,000 for the past two months.
So for bitcoin bulls, the jolt out of the doldrums was welcome, especially when the price went up, not down. The day’s gain came on strong trading volume, with levels not seen since early June.
“The trend is clear and we are headed higher,” said Jack Tan, of Taiwan-based quantitative trading firm Kronos Research.
Bitcoin is now up 57% year to date, more than double the 28% gain this year for gold, which climbed in recent days to a record. The Standard & Poor’s 500 Index of large U.S. stocks, meanwhile, is roughly flat for the year.
“Given gold has just set a new…