Bitcoin might be dumping if the Dollar Index flies 👀
So, obviously Bitcoin is highly correlated with the Dollar. This doesn't need much explanation, but the American economy is giving Bitcoin the value has, exactly like it gives everything else in the global markets its value.
The catch is; Bitcoin is often paired with the United States Dollar as a currency-pair. This means that both a rise in BTC in overall-value could give a positive change in the BTCUSD pair, but a rise in USD in overall-value could have a negative impact on BTC .
Since Bitcoin is SO correlated with USD, this would impact Bitcoins overall-value.
If we look at the Dollar-Index, we seem to be at a crossroad, where we have some support. If we bounce back up on the U.S Dollar Index Chart, this could clearly mean a lot to Bitcoin . I compared the situation to 2017.
Of course USD could dump further, which from a fundamental perspective would make sense, accounting for all the COVID relief-packages made by the government, creating hyperinflation sooner or later.
Let's not forget that Bitcoin and USD are highly correlated, and that we're at a point of the Dollar Index where it's do or die.
Where do you see the dollar heading?
The catch is; Bitcoin is often paired with the United States Dollar as a currency-pair. This means that both a rise in BTC in overall-value could give a positive change in the BTCUSD pair, but a rise in USD in overall-value could have a negative impact on BTC .
Since Bitcoin is SO correlated with USD, this would impact Bitcoins overall-value.
If we look at the Dollar-Index, we seem to be at a crossroad, where we have some support. If we bounce back up on the U.S Dollar Index Chart, this could clearly mean a lot to Bitcoin . I compared the situation to 2017.
Of course USD could dump further, which from a fundamental perspective would make sense, accounting for all the COVID relief-packages made by the government, creating hyperinflation sooner or later.
Let's not forget that Bitcoin and USD are highly correlated, and that we're at a point of the Dollar Index where it's do or die.
Where do you see the dollar heading?
What is it gonna be? Truth is, nobody knows right now.
Waiting for some form of confirmation.