The current environment suggests that most of the Bitcoin appreciation/depreciation might take place in very short periods of time. On the other hand, these moves might be short-lived if they are not followed by more capital.
In 2013, forex trading was linked intimately to expectations regarding changes in the Federal Reserve’s quantitative easing policy. Certainly, in 2014 market expectations will continue to focus on the future of tapering policy.
We believe these commodities are seen as attractive investments now not only because of their relatively low price compared to their prices last year, but also as a potential safe haven investment instead of shaky currencies around the world.
Thanks to the Fed's tapering, a wider public is becoming aware of currency instability in diverse economies, from Turkey to Argentina, and India to Indonesia. Indeed, on Tuesday night Turkey raised overnight interest rates by a whopping 4.5% to 12% in an attempt to stop a run on the lira.
The dollar strengthened a fifth day versus the euro as U.S. consumer spending rose the most in three years a day after the Federal Reserve scaled back bond purchases that weaken the greenback and support global asset prices.