Special Market Update - Alternative Currency Carnage

Alternative Currency Carnage

Gold and Bitcoin – two popular alternatives to holding the U.S. dollar (or other fiat currencies) – haven’t been so popular of late. Gold has fallen 10% since its recent high of $5,318/ounce on January 29 (while silver has fallen 36% over that same timeframe). Meanwhile, Bitcoin has fallen 35% since its year-to-date high of $97,558 on January 14 (and has nearly halved – down ~49% – since its October 6 level of $125,261). It’s difficult to fundamentally analyze Gold and (especially) Bitcoin – given they lack actual fundamentals (no cash flows off which to value them) – but Kevin Warsh’s nomination to be the next Fed Chair likely played a role, with his less-than-full-on dovish perspective and the credibility he brings to the Fed halting the U.S. dollar’s recent decline.

Click to read: Special Market Update - Alternative Currency Carnage