Short the Dollar: How Goldman's Bearish Stance Uplifts Bitcoin Q4 Sentiment

Published on by Cointele | Published on

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.

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