Bitcoin, Gold, and CHF: The Holy Trinity of Financial Desperation 🏦💸🇨🇭

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The ongoing economic and geopolitical tensions have fueled demand for safe-haven assets, with Bitcoin, gold, and the Swiss franc being in the driver’s seat. Alas, the U.S. dollar, that stalwart of fiscal responsibility, has taken a nosedive. One might say it’s experiencing a midlife crisis. 🐸

While Bitcoin’s (BTC) price has pulled back recently, it remains much higher than the year-to-date low. A minor stumble for a digital asset that’s mastered the art of being both a speculative gamble and a store of value. Meanwhile, Bitcoin ETFs continue to add assets this year, with their cumulative inflows rising by $54 billion since January last year. One wonders if the inflows are from investors or just confused algorithms. 🤖

  • Bitcoin, gold, and the Swiss franc have enjoyed a meteoric rise this year, like three peas in a pod.
  • The US dollar index has plunged by over 10% from the year-to-date high. A fall from grace, or perhaps a fall from a very high horse. 🐴
  • The three assets have become safe-haven assets amid heightened risks. A veritable trio of financial fortresses, or just the last survivors of a burning ship. ⚓

Geopolitical and economic risks are high

The U.S. economy shows signs of stagflation as consumer and producer inflation continue rising. The year-over-year U.S. consumer inflation rate (CPI) grew from 2.4% in June to 2.7% in July. The core CPI, excluding food and energy, accelerated to 3.1%. One might say the economy is cooking on all cylinders-or perhaps it’s just a slow-burning disaster. 🔥

U.S. job growth is also slowing, according to data released on Friday. The economy added just 22,000 jobs in August, while the unemployment rate moved to 4.3% – the highest level since the pandemic. A triumph of mediocrity, one imagines. 🤷

Economists expect that the upcoming inflation report will show that the headline consumer price index rose to 3% in August, continuing a trend that has been going on for months. A glacial pace of disaster, if one is to believe the experts. 🐢

Therefore, economists expect the Fed to cut interest rates by 0.25% in the upcoming meeting. Cutting rates in a stagflation risks pushing inflation higher in the coming months. A game of financial Jenga, perhaps? 🎲

Demand for safe-haven assets has also jumped as trade relations between the U.S. and other countries worsen. For example, India is reportedly aligning itself with China due to the Trump administration’s tariffs. A geopolitical love quadrangle, one suspects. 💔

The other significant risk has been the threat to Federal Reserve independence. Trump has considered firing Fed chair Jerome Powell, and has recently fired Lisa Cook in his bid to achieve lower interest rates. A circus, a carnival, and a very expensive metaphor. 🎪

Bitcoin, Swiss franc, and gold have soared

These risks explain why the U.S. dollar index has plunged, moving from the year-to-date high of $110 in January to $97.73 today. A descent so dramatic it would make a Victorian novel blush. 📖

At the same time, the gold price has recently surged to a record high as ETFs have added substantial inflows in the past few months. China’s central bank has bought gold in the last eleven consecutive months, bringing its holdings to $74 million troy ounces. Goldman Sachs analysts see the gold price hitting $5,000. A golden goose, perhaps? 🦆

The Swiss franc has also become a safe haven as it surged by 13% against the U.S. dollar. Investors love the low-yielding franc because of Switzerland’s stability, neutrality, and low public debt. A nation that’s mastered the art of doing nothing wrong, it seems. 🧊

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2025-09-07 23:08