Dollar Weakness Seen as Boost for Bitcoin
Fidelity's Jurrien Timmer believes that continued dollar weakness could boost Bitcoin. According to him, the market senses a 'slippery slope' towards fiscal dominance, which is causing both gold and Bitcoin to soar.
The Treasury's actions last week to buy back more long-dated paper and issue more Bills took down the dollar and caused a surge in both gold and Bitcoin prices. The maximum size of its liquidity-support buybacks for 10- to 30-year securities was at least doubled, improving liquidity.
Timmer thinks that gold and Bitcoin have plenty of room to run, as they've been the momentum laggards all year but are now catching up. He believes that Bitcoin could benefit from the same 'rising tide' supporting gold, but notes that gold may lead the move because it lacks its own catalyst.