Bitcoin hits all-time high as USD on track for worst year since 1973

Bitcoin has reached an all-time high amidst a significant decline in the US dollar, which is projected to face its worst year since 1973, down over 10% year-to-date. This coincides with a broader market trend where safe-haven assets such as gold and Bitcoin are surging along with risk assets like stocks. The S&P 500 index has seen a spike of over 40% in the last six months, while Bitcoin's price has soared to $125,000 and gold has hit $3,880 per ounce. Analysts from The Kobeissi Letter note that the correlation between gold and the S&P 500 has reached an unprecedented 0.91, indicating a potential shift in monetary policy. They attribute this unusual market behavior to rising inflation, a weakening labor market, and recent political instability due to a government shutdown, all of which positively influence Bitcoin's appeal as a store of value. Investor confidence is shifting towards Bitcoin amid growing concerns over the dollar's diminishing purchasing power, which has decreased by 40% since 2000.

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