The US dollar crisis gave ground for Bitcoin’s rise. The first cryptocurrency is showing an unprecedented return rate. Moreover, it has become a great alternative to the US dollar compared even to gold.
Bitcoin has recently broken the level of $12,000 that was last logged on August 9 in 2019. Notably, in March, one Bitcoin cost just $3,800, and later, it soared by 220%.
As usual, Bitcoin’s rise is followed by an advance in other cryptocurrencies. Precious metals are also becoming more and more expensive. The rally of both assets was triggered by the US dollar crisis which resulted in the loss of the greenback’s status of a safe-haven asset.
Curiously, at the moment, investors prefer digital assets to the US dollar that was shattered by the coronavirus outbreak and the Fed’s policy. The fact is that the regulator has launched massive money printing that, of course, is leading to the depreciation of the US national currency.
Thus, against the background, Bitcoin looks really attractive for investors who want to avoid large-scale volatility in the global market. Those who understood this at the beginning of March managed to save and even enlarge their investments.
However, traders should remember that the crypto market is also extremely volatile. Statistics show that Bitcoin may both gain and lose 220% in a short period of time.
