Bitcoin is expected to see its third consecutive week of gains. Against the backdrop of increased volatility in the stock market, foreign exchange market, and bond market, some traders have turned to crypto assets and gold, driving Bitcoin higher this week.
This week's increase is nearly 5%.
As of the time of this report, Bitcoin has risen by approximately 4.6% this week, reaching a high of $82,272.31 at one point during the session, the highest level since May 11, before falling back to around $81,151.10.
For most of this year, Bitcoin has shown a weak trend. Since the beginning of June, its price has fluctuated within the range of $60,000 to $70,000. In late August, Bitcoin once again surpassed the $70,000 mark and then continued to rise.
Weaker U.S. dollar drives safe-haven trading
The market has recently regained interest in what are known as "currency depreciation trades." Such trades typically occur when investors reduce their exposure to the US dollar and turn to gold and crypto assets. CNBC cites the view of Dominika Nestarcova, Executive Director of Digital Assets at Goldman Sachs, stating that since the end of August, these trades have heated up again, becoming an important backdrop for Bitcoin's upward momentum.
She stated that after the U.S. Treasury Department announced an increase in its purchases of longer-term U.S. Treasury bonds, long-term yields fell and the dollar weakened, followed by a simultaneous rise in Bitcoin and gold. This change has increased investors' interest in Bitcoin.
Ethereum and Solana rise in tandem
In addition to Bitcoin, other mainstream crypto assets also saw increases. Ethereum once rose to $2,545.62 on Friday, reaching a high since August 27. Solana reached a high of around $105.70, setting a new record since August 31.
From the market perspective, this round of gains is not driven by a single cryptocurrency; rather, it is related to the reallocation of funds amidst macroeconomic asset fluctuations. As the US dollar weakens, bond market yields change, and the demand for hedging increases, the short-term performance of crypto assets continues to attract attention.
