Gold and US dollar lose ground against Bitcoin, XRP continues to rise

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Last Updated on 6 November 2023 by CryptoTips.eu

You may not have noticed it (unless you’re vacationing in New York or Miami), but the US dollar is losing ground against the Euro and other major currencies this year. Gold is also losing ground as a safe investment. Both see their market share as a safe haven investment slowly diminishing, and are losing ground to Bitcoin. That is if Larry Fink, CEO of the largest investment fund in the world Blackrock, is to be believed. The fact that Fink expects the Bitcoin price to triple if his ETF is approved probably plays a role in that quote.

The biggest gainer of the major cryptos this weekend was once again XRP, the Ripple labs coin that continues to benefit from the positive court ruling it received this week in its lawsuit against the SEC.

Advertentie.

Fed and ECB

At one point last year, the US dollar outperformed the Euro for the first time in nearly twenty years. This was because the Federal Reserve acted earlier than other central banks (such as the ECB, the Bank of England and the Bank of Japan) by introducing rate hikes. Investors therefore preferred the Dollar to the Euro at that moment because inflation in the Eurozone would fall more slowly than in the US.

By now, the dollar is losing ground again and last week even stood at $1.12 against the Euro, its lowest level in a year.

Gold investors are also starting to have doubts, at least if we can believe Larry Fink, CEO Van Blackrock.

Fink, who was interviewed by CNBC this week, said:

More and more gold investors have been asking about the role of crypto over the last five years, highlighting the role exchange-traded funds (ETFs) have had in democratizing access to gold, as they could do in crypto. If you look at the value of our dollar, how it depreciated in the last two months and how much it appreciated over the last five years … an international crypto product can really transcend that,

That’s why we believe there’s great opportunities and that’s why we’re seeing more and more interest. And the interest is broad-based [and] worldwide.

The gold price gained 300% in the six months after the precious metal’s first ETF approval back in 2004. Blackrock apparently counts on Bitcoin also making a great bull run if their ETF is approved at the end of the summer.

XRP winner of the weekend

The sun continues to shine not only in the south of Europe, but also on XRP, the coin of Ripple Labs. Optimism following Ripple Labs’ lawsuit ruling against the SEC continues to reverberate, and on Sunday, XRP once again took over the fourth place spot on CoinMarketCap from BNB (Binance Coin).

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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