The continuous economic and geopolitical tensions have promoted the demand for safe assets, with Bitcoin, Gold and the Swiss Franco in the driver’s seat.
While bitcoin (BTC) The price has recently been withdrawn, it is still much higher than the minimum of the year to date. In addition, Bitcoin ETFs continue to add assets this year, with their cumulative tickets by increasing at $ 54 billion since January last year.
Summary
- Bitcoin, Gold and Swiss Franc has jumped this year.
- The US dollar index has passed by more than 10% from the maximum of year to date.
- The three assets have become safe assets in high risks.
Geopolitical and economic risks are high
The United States economy shows signs of stagflation as inflation of consumers and producers continue to increase. The consumer inflation rate (CPI) year after year grew from 2.4% in June to 2.7% in July. The central ICC, excluding food and energy, accelerated to 3.1%.
The growth of employment in the United States is also slowdownaccording to the data published on Friday. He The economy added only 22,000 jobs In August, while the unemployment rate went to 4.3%, the highest level from the pandemic.
Economists expect the next inflation report to show that the main consumer price index increased to 3% in August, continuing a trend that has been happening for months.
Therefore, economists expect FED to reduce interest rates at 0.25% at the next meeting. The reduction of rates in a stagflation runs the risk of pushing the highest inflation in the coming months.
The demand for safe assets of Haven has also jumped as trade Relations between the United States and other countries get worse. For example, India is As reported, aligning with China due to Trump administration rates.
The other significant risk has been the threat to the independence of the Federal Reserve. Trump has considered saying goodbye to the president of the Fed Jerome Powell, and recently fired Lisa Cook in her attempt to achieve lower interest rates.
Bitcoin, Swiss Franc and Gold have shot
These risks explain why the US dollar index has collapsed, moving from the maximum update of $ 110 in January to $ 97.73 today.
At the same time, the price of gold has recently increased to a record, since ETFs have added substantial tickets in recent months. The Central Bank of China has bought gold in the last eleven consecutive months, which takes its shares to $ 74 million ounces of Troy. Goldman Sachs analysts see the price of gold that reaches $ 5,000.
The Swiss Franco has also become a safe shelter, since it increased by 13% against the US dollar. Investors love low yield due to the stability, neutrality and low public debt of Switzerland.
