Goldman Sachs, a $ 71.4 billion investment bank, is reported to be losing value against the US dollar. For Bitcoin (BTC), which recently went above the alarming $ 11100 level, this could be a potential catalyst.

Bitcoin is approaching the last two months of the year with a lot of uncertainty. But if the dollar continues to fall, it could increase Bitcoin and gold performance in the fourth quarter.

Daily Bitcoin chart. Source: TradingView.com
Why Goldman Sachs is not optimistic about the dollar
Zach Bandel, co-Chair of Global Monetary Strategy, Pricing and Emerging Markets at Goldman, predicts that the dollar will hit its lowest level in 2018.

In a customer memo received by CNBC, Pandle and his team of analysts identified two key factors. First, Pandel said that potential blue wave choices remain a significant risk for the US dollar index (DXY). Second, the prospects for a COVID-19 vaccine are unclear.

On September 30, Stefan Bansel, CEO of Moderna, told the Financial Times that the vaccine will probably not be ready until after the election.

Lack of clarity about vaccine production and distribution, as well as election risk, can hamper the dollar’s exchange rate. Pandle wrote:

“In our view, the blue election in the US and positive news about the vaccination calendar could bring the trade-weighted dollar and the DXY index back to the lowest levels in 2018.
If the dollar falls, it will naturally be advantageous with alternative value stores such as Bitcoin and gold. As alternative assets are valued against the dollar, the DXY fall triggers an increase in the value of other stores.

In addition to the falling dollar, Pandle also pointed out that potential vaccine leaks could lead to an increase in risky assets. As such, if organizations view Bitcoin as a risky asset, it may raise the bar against BTC. Pandle wrote:

“Of course there are serious risks: we are not sure how long the number of votes (especially in the Senate) and the stock market’s reaction to the ‘blue wave’ will be.” But the big difference in today’s polls reduces the risk of delays in election results and could give a potential breakthrough. The short-term vaccine is a pillar of risky assets. ”
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Bitcoin’s technical structure remains optimistic
The constant story of Bitcoin’s performance in the long run is the structure of the fast time frame.

Bitcoin’s weekly and monthly charts are still very positive due to BTC’s response from the $ 10,500 support range to $ 10,700.

On October 12, Bitcoin’s price peaked at $ 11,500 for the first time since September, indicating strong momentum.

Bitcoin’s recovery above the $ 11,300 resistance level is critical as it follows a series of negative developments in October.

From allegations against BitMEX to US President Donald Trump’s response to incentives, BTC has faced several incidents that could trigger a sharp reversal.

After a long period of recession throughout September, the recent Bitcoin price action is still positive.

Source: CoinTelegraph

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