Bitcoin has rallied by over 400% since Goldman Sachs issued a short dollar recommendation on Oct. 9.
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Investment banking giant Goldman Sachs’ latest decision to retract from its bearish view on the U.S. dollar is receiving a thumbs down from financial markets.
While bitcoin is trading nearly 1.5% higher on the day at $59,000 at press time, the dollar index, which measures the greenback’s value against fiat currencies such as the euro, pound and yen, is 0.5% lower at 92.56.
Goldman Sachs on Friday recommended closing U.S. dollar short trades against a basket of currencies, including the commodity-sensitive Aussie and New Zealand dollars.
Although we still expect these currencies to appreciate versus the dollar over the coming quarters, firm U.S. growth and rising bond yields may keep the greenback supported over the short term,” strategists including Zach Pandl wrote in a note titled “tactical retreat,” according to Bloomberg.
Goldman recommended short dollar trades on Oct. 9 when bitcoin was trading near $11,000, a far cry from the current $59,000. Bitcoin hit a record high of $61,557 last month.
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