Bitcoin Rallies as Fiat Currencies Drop Against the U.S. Dollar

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Source: iStock/Avosb

After a major market crash last week, , the most popular cryptocurrency, at least today is somewhat showing its power as a hedge against risks inherent in fiat currencies and the broader financial system.

Trading up 12% over the past 24 hours as of press time (USD 5,772 at 12:41 PM UTC), bitcoin is one of a few bright spots as the carnage continues in both the stock market and the foreign exchange market.

Over the past few days, we have witnessed what can be described as a meltdown in several fiat currencies, as measured against the U.S. dollar. Among these is the euro, the Australian dollar, the Canadian dollar, and many smaller currencies such as the Norwegian krone, which have all seen historic sell-offs against the U.S. dollar.

In the past five days, the U.S. dollar is up more than 8% against some of the largest fiat currencies

Source: a screenshot, CNN

Despite the massive sell-offs that have already been seen, however, investors such as CEO of Real Vision Group, Raoul Pal, believes the U.S. dollar is still the place to be for most people, writing on Twitter:

“Literally no one is long enough dollars. NO ONE. Pick any currency to short, it matters not. If you are in a different country, switch some cash into dollars. Buy what everyone is about to be desperate for....and do it NOW.”

“We are seeing an unprecedented situation where the more central banks ease, the more dollars are being stacked,” Min Gyeong-won, an economist at Shinhan Bank in Seoul, told Bloomberg. “The , with markets not listening, worsening the dollar chaos and extending losses in Asian currencies.”

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Learn more: Fiat Money Printer 'Goes BRRR,' Is It a Time To Sell All Cash For Bitcoin?

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