Bitcoin’s Inverse Relationship to the US Dollar Is Breaking Down
Despite the dollar’s 2016 gains and year-end rate hike, Bitcoin still outpaced the global reserve currency in 2016 in price terms. Bitcoin’s “inverse relationship to the Dollar” seemingly no longer persists. The Only Fed Rate Bitcoin Has Ever Known. Record low interest rates between December 2008 and December 2016 created unprecedented economic....
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A recent technical breakdown shared by crypto analyst Trader Tardigrade added a notable outlook to the discussion of how fast Ethereum can enter into a bull run or if there’s more consolidation ahead. In his post on X, he compared Ethereum against the US Dollar Index and then consulted Perplexity AI for a data-backed explanation of the relationship. The result was a match of DXY peaks and Ethereum bottoms, pointing to a recurring inverse pattern that may now be coming back into play. Ethereum’s Volatility Tied To The Dollar Index The technical analysis from Trader Tardigrade focuses on the....
Janet Yellen the Chair of the US Federal Reserve, is expected to announce the lift-off of interest rates from historic lows in its December 15 meeting. A better-than-expected jobs report also raised confidence that the US economy is primed for higher interest rates. But, how does that concern the Bitcoin ecosystem? To understand this in a simple way, let us see how Bitcoin has performed against the US dollar in the past two years. Below is the weekly U. S. Dollar Index chart compared with the BTC-USD pair in the lower section. Image. June 2014 - Feb 2015: Inverse Relation Confirmed. From....
According to NYDIG research, Bitcoin’s price moves are driven more by the strength of the US dollar and broad liquidity conditions than by direct ties to inflation. Greg Cipolaro, NYDIG’s global head of research, said the data show weak and inconsistent links between inflation measures and Bitcoin. That view shifts attention away from the old narrative that Bitcoin is mainly an inflation hedge. Related Reading: XRP: The Catalyst For ‘Humanity’s Greatest Shift’ By 2030 —Analyst Inflation Link Weak Cipolaro argued that expectations for inflation are a slightly better signal than headline....
Update: This article has been changed to add three charts that were left out during the editing process. In 2015, Bitcoin performed exceptionally well both as a currency and as a commodity. Interestingly, the cryptocurrency Bitcoin, which is also classified as a commodity, has even defied the well-held microeconomics principle that preaches that:....
Multiple voices forecast a weaker dollar in the long term, starting now, in a prime boost for safe havens. Bitcoin (BTC) may get fresh support for a record-breaking year in 2021 thanks to the demise of a familiar foe: the U.S. dollar.As various sources noted this week, the dollar is trading at almost three-year lows against various currencies and five-year lows against the Swiss franc. Analyst: Long-term trend “clearly dollar weakness”Weakness in the dollar tends to translate into strength for Bitcoin, and 2020 has been the year in which the U.S. dollar currency index (DXY) has become a....