A news segment on TD Ameritrade Network portrayed Bitcoin as a better investment than US stocks.
Key presenter Oliver Renick, at the end of his six-minute long market recap, stated that investors are more interested in owning Bitcoin than stocks. He said the cryptocurrency has "a lot to do," as it is the only asset that performed bullish on positive US stimulus news on Wednesday.
You might call him a #bitcoin cynic, but as stocks struggle despite the market seemingly already pricing in stimulus, @OJRenick says $ btc‘S rally is“ the most positive thing for bitcoin bugs ”since he started covering it.” 👀
– TD Ameritrade Network (@TDANetwork) October 21, 2020
Bitcoin abandons correlation with stocks
The White House and Democrats in the United States Congress have moved closer to agreeing on the size and details of the next coronavirus aid package. President Donald Trump said he is willing to allow more extensive aid despite facing opposition from members of his own Republican party.
Mitch McConnell is deliberately sabotaging COVID relief negotiations — and Coloradans get nothing but cowardly silence from Cory Gardner.
We’re sick of Sen. Gardner putting political games ahead of Coloradans struggling to pay bills & put food on the table. https://t.co/AlFnd2S9cp
– John Hickenlooper (@Hickenlooper) October 21, 2020
The Speaker of the House of Representatives, Nanci Pelosi, also said that she is hopeful about the possibilities of a new agreement. However, he acknowledged that it will not happen until the presidential elections on November 3.
It was upbeat news for risk assets. So far, the prospects for a second stimulus package against the coronavirus weakened the US dollar, which, in turn, benefited US stocks and Bitcoin. But on Wednesday, as Renick pointed out, Wall Street indices fell along with the US dollar index.
"Bitcoin breaks higher while the stock market does not respond to the falling dollar and stimulus, it is the most positive for the errors (of the cryptocurrency) since (TD Ameritrade) we began to cover it three years ago", commented the presenter news.
There is no more to turn
In his comments to Bloomberg, NatWest Markets Global Head of Desk Strategy James McCormick said that "there is more and more recognition that there is likely to be no pre-election fiscal package deal." In addition, he noted that investors are not focusing on the problem of the coronavirus resurgence, all eyes are on the stimulus agreement.
Their uncertainty was visible throughout the safe haven market. Gold in hedging assets rose 0.91 percent on Wednesday, its best daily close since Oct. 9 on falling dollar sentiment. The precious metal showed it worked as an alternative to the market that was seeking insurance against its exposure to stocks.
It rose along with gold as investors evaluated its growing prominence as a store of value asset among top companies. That includes Square, a multinational payments company, which bought $ 50 million worth of BTC last week; and MicroStrategy, a publicly traded software company, which replaced $ 425 billion of its cash reserves with BTC.
Many analysts noted that the cryptocurrency would rise to at least $ 15,000 by the end of this year. Bitcoin is trading at $ 13,090 as of this writing.