Strong dollar weighs on Bitcoin, while gold hits record $4,000

The US dollar is currently gaining strength, and this is putting pressure on Bitcoin (BTC). Meanwhile, this has also led to a historic breakthrough for gold. The precious metal continues to amaze this year and is now even trading above the $4,000 level.

Gold rises above $4,000, BTC loses ground

The gold price has broken through the barrier of $ 4,000 per ounce. This is yet another record level this year. This increase is supported by strong inflows into gold-related exchange traded funds (ETFs).

At the same time, the US dollar index (DXY), the index that shows the strength of the dollar against other currencies, rose to 98.90. This is the highest level since early August. A strengthening dollar typically puts pressure on assets traded in US dollars, including Bitcoin (BTC).

The price of BTC is down by more than 1 percent and fluctuates around $ 122,500, after the price came very close to $ 120,000 last night. Earlier this week, the currency hit a new record high around $126,000.

Stock markets cautious, gold as a safe haven

Stock markets show a cautious picture, with investors preparing for new economic figures. Inflation and employment data, among others, could influence market sentiment in the coming days.

In this uncertain environment, gold is clearly acting as a safe haven, while riskier assets such as cryptocurrencies are under pressure. In the short term, gold and Bitcoin perform very differently, which shows that investors prefer to opt for safe investments in times of economic uncertainty. In the longer term, the two tend to move in the same direction, as both gold and Bitcoin are close to their record highs.

Gold is the largest financial asset in the world and therefore often the center of all attention. Gold is having a truly historic year with one all-time high after another. But gold’s little brother silver is now doing even better than gold.

Silver rose to a high of $50 this morning, putting it up 64 percent this year. Gold is up by more than 52 percent this year. Bitcoin, but also Ethereum (ETH), both rose by around 30 percent in the same time frame.