Rising commodity prices and the re-emergence of a strong USD have been increasing trader woes, according to the former CEO of Goldman Sachs. In the same statement, he also wondered why crypto and related assets are not doing well. BTC prices fell and remained at a weekly low on March 7th. Investors and funds were resorting to safety, and this didn’t help the crypto market at all.
As per data released by TradingView, an analytics firm, BTC/USD prices rose briefly to $37,600.
This pair had been under pressure at the close of the week and remained low based on news that sanctions on Russia could include an embargo on oil exports. In an already unstable and fearful atmosphere, gold prices have risen to $2000/oz as of March 7th, 2022. The last time gold prices were this high were in August 2020.
The same was true of price increases for the US dollar – it is close to a 2-year record. According to one analyst, if BTC price performance was not tied to the stock market, its performance would be the same as gold. A decoupling is actually needed more now than at any other time. This is because stocks are also under pressure due to the mix of inflation measures being put in place by governments and commodity prices skyrocketing.
The lackluster performance of BTC and other cryptos has captured the attention of traditional bankers as well. Many of them wonder why crypto has not better. CEO of Microstrategy has put the blame squarely on the conflicting profiles of investors who are actively investing in BTC. He expects this status quo to be broken soon and crypto will live up to its function as a good long term method for investment.