Three Critical Factors to Watch Carefully in 2024: Bitcoin, Gold, and the BRICS Alliance!

• 2024 has emerged as a critical period marked by the convergence of strategic initiatives among BRICS countries, the enduring appeal of gold, and Bitcoin’s ascent to the sky.
• The BRICS bloc hasn’t shied away from criticizing the US dollar. Particularly, they have demanded a significant reduction in global dependence on the US dollar.
• China’s digital yuan has achieved significant success. Countries worldwide have followed suit, attempting to create their own digital currencies.

The agenda in the markets for 2024 could be dominated by the BRICS Alliance, Bitcoin, and Gold: Expectations and factors affecting the US dollar!

The Gold and Bitcoin Factor in 2024

2024 has emerged as a critical period marked by the convergence of strategic initiatives among BRICS countries, the enduring appeal of gold, and Bitcoin’s ascent to the sky. This powerful trio poses a threat to the long-standing control of the US Dollar over international currency dominance by changing the dynamics.

Economic challenges have significantly affected the US for a considerable part of the past year. Similarly to the international community, the country has tried to curb inflation and strengthen its fragile financial situation. However, next year could be even more challenging for the US dollar as BRICS, gold, and Bitcoin collaborating might lead to its destruction.

All three present arguments that can significantly impede any potential developments on the US dollar next year. They also serve as indicators requiring confirmation that the dollar might experience a significant decline.

ING was among the experts predicting a decline in the US dollar in 2024. They specifically stated that the expected decline throughout the year, except for the emergence of significant unexpected risk premiums in the currency space, is anticipated. However, the BRICS economic alliance is accountable for a significant portion of this decline.

The BRICS bloc hasn’t shied away from criticizing the US dollar. They have demanded a significant reduction in global dependence on the US dollar, implementing strategies to reduce such dependence through multilateral trade operations.

Successful implementation of such strategies, due to several countries committing to executing these plans by 2024, could yield results visible in the coming year. Consequently, while being a significant component of the decline, BRICS seems ready to collaborate with gold and Bitcoin to produce a challenging year for the US dollar.

Standard Chartered predicts that Bitcoin will reach $100,000 by the end of next year. Such an investment represents a cosmic shift in the world’s financial reality. Additionally, the rising international trend towards digital assets ignores the interest in digital assets as a currency.

China’s digital yuan has achieved significant success. Countries worldwide have followed suit, attempting to create their own digital currencies. The more dominant these currencies become, the more these countries try to distance themselves from the US dollar. There should be many opportunities for this in 2024.

Performance of Gold, Bitcoin, and the Dollar

The crypto market is on an upward trajectory, especially with today’s Bitcoin bull run leading the way. Bitcoin (BTC) is currently trading at $41,610 per coin, with a 24-hour trading volume of $35,222,787,013.49. This represents a 5.50% increase in the last 24 hours and a 12.89% increase in the last 7 days.

The current global crypto market value is $1.61 trillion, showing a 3.69% increase in the last 24 hours and a 79.51% increase compared to a year ago. The current market value of Bitcoin is calculated at $818 billion, indicating a 50.88% market dominance. Meanwhile, the market value of stablecoins is $130 billion, constituting 8.1% of the total crypto market size.

Gold reached new highs early on Monday, breaking its previous high since August 2020. Despite the Federal Reserve’s cautious view, this rise was triggered by increasing expectations of a rate cut in the US.

The rise in gold, starting in October, was further encouraged by Federal Reserve Chairman Jerome Powell’s statements about the restrictive condition of monetary policy. These statements led to a decrease in the currency and Treasury yields and benefited gold. Despite expectations of a rate cut in May, Powell warned against early expectations of policy easing.

The introduction of the precious metal brings several consequences. Firstly, it offers a critical investment opportunity for countries amid the continued weakness of the dollar. Secondly, the popularity of gold is strongly linked to investors’ expectations of the performance of the US economy. Indeed, the asset is generally considered a hedge against inflation, and its rise can affect the currency.

Many predictions expected gold to surpass its all-time high of $2081 in 2024. However, the asset seems to be on a good path to approach this figure. If this trend continues, the US dollar could face another challenge next year.