Goldman Sachs, the $71.4 billion investment bank, is reportedly bearish on the U.S. dollar.
If the dollar continues to slump, it could buoy the momentum of BTC and gold in the fourth quarter.
Zach Pandl, the co-head of Global FX, Rates, and EM Strategy at Goldman, predicts the dollar to hit 2018 lows.
First, Pandl said the potential "Blue wave" election remains a significant risk to the U.S. Dollar Index.
The lack of clarity on the production and distribution of vaccines, as well as the election risk, could hinder the dollar's momentum.
"In our view, a 'blue wave' U.S. election and favorable news on the vaccine timeline could return the trade-weighted Dollar and DXY index to their 2018 lows."
If the dollar drops, it would naturally benefit alternative stores of value like Bitcoin and gold.
A persistent narrative around the medium-term performance of Bitcoin has been its high time frame structure.
On Oct. 12, Bitcoin surged above $11,500 for the first time since September, demonstrating strong momentum.
Following a prolonged period of stagnance throughout September, the recent price action of Bitcoin remains positive.
Short the Dollar: How Goldman's Bearish Stance Uplifts Bitcoin Q4 Sentiment
Published on Oct 12, 2020
by Cointele | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
First Mover: What's Next for Bitcoin as Wall Street Gets Vaccine Booster
Bitcoin was higher for a second day, staying in a range of between roughly $15,200 and $15,600, as news of progress in developing a coronavirus vaccine appeared to touch off a rally in U.S. stocks.
Market Wrap: Bitcoin Fails to Break $15.9K; Over 50K ETH Staked on Eth 2.0 Contract
Bitcoin gained Wednesday while Ethereum 2.0 staking has been ramping up.
Citibank Analyst Says Bitcoin Could Pass $300K by December 2021
A senior analyst at U.S.-based financial giant Citibank has penned a report drawing on similarities between the 1970s gold market and bitcoin.
Blockchain Bites: Data Unions. Hard Forks. And One Citi Analyst's Case for $300K BTC.
A Citibank managing director thinks bitcoin could hit $318,000.