The Strategist

Bitcoin rate hits 3 months maximum due to unrest in USA

06/03/2020 - 06:57

On June 2, the exchange rate of the most popular cryptocurrency Bitcoin confidently overcame the level of $ 10 thousand and reached its maximum level since February 2020. The growing unrest in the United States, as well as the continuing disagreement in relations between the United States and China are forcing investors to transfer part of the funds to defensive assets, including virtual ones.

According to Reuters, Bitcoin exchange rate reached $ 10.4 thousand on Tuesday, the highest since February 13. This result was up 7.5% on Monday's close. In fact, throughout May, the price of Bitcoin remained below a psychologically important level, overcoming it for a short time only on certain days.

In fact, it is about depreciation of the American currency against many currencies. According to Reuters, the DXY index (the dollar against six leading world currencies) fell by 0.4% on Tuesday, to 97.43 points, the lowest level since March 13. The reason for the game to lower the dollar was the massive unrest in the United States, analysts say.

Since the capitalization of cryptocurrencies is not very large, their rate reacts more strongly to such events. In addition, increased tensions between China and the United States are also contributing to investing in defensive assets. Not only Bitcoin exchange rate is growing, but investors are also buying gold, maintaining its value near maximum values since November 2012.

Market participants are also scared by forecasts that the US stock market is overvalued, just like before the collapse of the dotcoms in March 2000.