Max Keiser: “USD Overbought, Money Moving into Commodities & Bitcoin” as Gold, Silver and Oil Rally
The Federal Reserve has left the interest rates unchanged in the range of 2.25 percent and 2.50 percent.
“In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes,” the Fed said in its statement.
The central bank is seeing a strong economic growth while noting rising economic risks in the global economy.
It’s bull time for the global markets after Federal Reserve shared its outlook on the future monetary policy and the economy of the US.
Bull Time for Stocks, Gold, Silver, Palladium, & Oil
Gold prices are trading near an eight-month high at $1,323 after the dovish Federal Open Market Committee (FOMC) statement. FOMC that makes decisions about the interest rates and the growth of the United States money supply have removed the chances of any further rate increases. Gold is in a strong uptrend as today has been the fourth straight day of having higher daily highs.
Just like gold, a similar spike can be seen in Silver as well. After dovish Fed signals, US stocks surged and now China stocks have also joined the Asian market in a rise.
Dollar Becomes Less Attractive
Meanwhile, the dollar has weakened across the board. Now, currencies such as the Australian dollar and New Zealand dollar are rallying against the greenback. The drop in dollar further benefited the euro, Swiss franc, and Japanese Yen.
However, investors were a bit wary of buying these currencies aggressively as fund manager Constantin Bolz of wealth manager Portfolio Concepts said,
“European shares are down in the red and U.S. stock futures are flat and we need to see further signs of weakness from the U.S. economy before aggressively selling the dollar.”
Could it mean Anything to Bitcoin & Crypto Market?
The downward shift in US Dollar is resulting in the surge of the global stock market and precious metal prices. But will it have any effect on Bitcoin and cryptocurrency prices?
Bitcoin proponent and VC investor, Max Keiser says the ongoing rally in the precious metals and oil are providing a floor to Bitcoin.
Keiser further clarified on investors pulling out of Bitcoin and moving to gold,
“Any cross-trading action between Gold/BTC, in $-volume terms, is insignificant. As $ turns down, cash moves into commodities and it takes 133x more buying to move Gold the same % as Bitcoin.”
Bitcoin and crypto market started the day with greens, however, currently, Bitcoin is down 0.35 percent at $3,461. Half of the top cryptocurrencies are in the red by about 1 to 2 percent except for Tron which is down over 6 percent. The other half is in the green in 1-2 percent range.