Cryptos Join The Precious Metals Party: Ethereum Surges To 5-Month Highs
Tyler Durden
Wed, 07/22/2020 – 20:15
Mimicking their non-fiat currency peers in precious metals land, cryptos are surging higher tonight as Asian markets open.
Source: Bloomberg
Bitcoin jumped back above $9600, its highest in a month…
Source: Bloomberg
But it is Ethereum that is stealing the show for now, ripping higher to $170 – its highest since February…
Source: Bloomberg
With yields crashing to near record lows around the world, negative-yielding debt is once again on the rise making the zero-yielding precious metals and crypto even more attractive as a lower cost place to store wealth…
Source: Bloomberg
And it seems crypto has some catching up to do as gold and negative-yielding debt values trade tick for tick higher.
As Tyler Winklevoss recently noted, “The Fed continues to set the stage for bitcoin’s next bull run,” in a July 22 tweet, which included an article link on the government agency’s discussions of further stimulus spending.
As a decentralized borderless digital asset away from government control, Bitcoin holds as a potential hedge to mainstream markets and national dollars — a point often stressed by a number of crypto industry participants.
Bitcoin holds a 21 million coin maximum supply, protecting the asset against value dilution. “When money printer go brrrr and inflate the stonks market, it’s time to Bitcoin,” Winkelvoss said in a July 18 tweet, referring to U.S. money printing resulting in a rising stock market, while giving the nod to Bitcoin as an alternative.