Gold achieves a historic high, reaching $2,135.39 per ounce, while Bitcoin surpasses the $40,000 mark for the first time in 19 months during Asian trading.
- Gold hits a record high, surging by 3.1% to $2,135.39 per ounce in Asian trading.
- Bitcoin breaks the $40,000 barrier, rising by 4.69% to $41,267.53, marking a 19-month high.
- Market sentiments are driven by bets on a potential US Federal Reserve rate cut, with expectations for a reduction as early as March.
- Despite the dollar’s rise and stable two-year Treasury yields, gold and Bitcoin rally amid ongoing anticipation of easing measures and approval of US spot Bitcoin exchange-traded funds.
Historic Highs for Gold
Gold’s Record Surge In a notable market development, gold has surged to a new record, experiencing a substantial 3.1% increase to reach an unprecedented $2,135.39 per ounce during Asian trading. This surge is attributed to the prevailing sentiment in markets, fueled by increasing expectations of a potential rate cut by the US Federal Reserve, possibly as early as March.
Bitcoin Breaks 19-Month High
Simultaneously, Bitcoin has shattered the $40,000 barrier, achieving a 19-month high by reaching $41,267.53. This surge is indicative of the cryptocurrency’s resilience and growing investor confidence amid the broader economic landscape.
US Economic Indicators and Market Outlook
While the dollar has seen a marginal increase and two-year Treasury yields have stabilized, traders continue to hold expectations of a Fed rate cut, with swaps indicating a full reduction by May and projecting a full point of easing by December 2024.
Bitcoin’s Rebound and Global Economic Indicators
Bitcoin’s upward momentum is attributed not only to expectations of lower interest rates but also to the cryptocurrency industry’s anticipation of potential approval for US spot Bitcoin exchange-traded funds.
As the industry awaits regulatory decisions, Bitcoin’s resilience is evident in its climb toward $41,000.
The simultaneous historic highs of gold and Bitcoin, driven by expectations of a US Federal Reserve rate cut, underscore the market’s response to economic uncertainties.
Despite the dollar’s marginal rise, the surge in gold and Bitcoin reflects a prevailing sentiment favoring safe-haven assets and digital currencies.