#CryptoWatch BTC: Is the USD some kind of Oxygen to King Kong ?
This is why King Kong had to take a breather - market participants ....although late to realize it had to follow what the USD commanded.
In the first days of BTC challenging the ATH not everybody was shy to buy there - a few were aware of the inflationary scope in the USD and were looking for a working hedge, a connection had to be found of an asset that could thrive in such an environment. As XAU ist influenced by central banks the only other way to go was BTC , it took the majority two weeks to FOMO. from there on it was shaving of the USD and giving it to BTC - timelag of a peak in USD to a Peak in BTC narrowing from about twelve to just about two days. After the USD broke its downward trend ( pls refer to my piece #FXMarketWatch USD) it was just annother following through of fast money accounts.
This might go on for awhile as the USD is in correction mode, but as soon as USD weakness should emerge again (especially when 1,23 is overturned) King Kong will resume his journey to the North.
In the first days of BTC challenging the ATH not everybody was shy to buy there - a few were aware of the inflationary scope in the USD and were looking for a working hedge, a connection had to be found of an asset that could thrive in such an environment. As XAU ist influenced by central banks the only other way to go was BTC , it took the majority two weeks to FOMO. from there on it was shaving of the USD and giving it to BTC - timelag of a peak in USD to a Peak in BTC narrowing from about twelve to just about two days. After the USD broke its downward trend ( pls refer to my piece #FXMarketWatch USD) it was just annother following through of fast money accounts.
This might go on for awhile as the USD is in correction mode, but as soon as USD weakness should emerge again (especially when 1,23 is overturned) King Kong will resume his journey to the North.