For the longest time, Bitcoin was seen as an asset that is independent of the movements of traditional markets. But, the pandemic struck. It has dramatically altered the state of the global economy, with analysts now arguing that BTC’s directionality is dependent on certain markets.
One such market that strongly influences Bitcoin according to analysts is that of the U.S. dollar.
Chart of Bitcoin with the U.S. dollar index (DXY) from TradingView.com
After all, the U.S. dollar is the world’s reserve currency, accounting for much of the world’s commerce activity and financial markets.
Bitcoin Could Surge as U.S. Dollar Faces Correction
After flatlining for about a month, the co-founder of DTAP Capital and Gold Bullion International, Dan Tapiero, expects the U.S. dollar to drop.
He cited the Federal Reserve’s potential intent to remove the 2% cap on the Consumer Price Index “as inflation stays stubbornly low with huge debt overhang.”
Chart of Eurozone-US core inflation spared vs. the value of the Euro against the dollar shared by Dan Tapiero
The investor shared the chart below, showing that the correlation between global inflation rates suggests that U.S. dollar will strongly devalue against the euro.
Bitcoin, Tapiero claims, stands to benefit from this trend. He wrote:
“#Dollar consolidating for one month but now on verge of benign SELLOFF that further supports #equity, #gold and #Bitcoin.”
This comment came shortly after he noted that the U.S. dollar has formed a textbook “cup and handle” pattern that suggests a big “downmove is coming.” Like with his recent comment, he said Bitcoin would benefit if that downmove arrives.
This comment has been echoed by Rob Koyfman, the CEO of Koyfin and a former vice president at Goldman Sachs. He wrote in a June blog (emphasis his):
“Lastly, Bitcoin is setting up to have a significant move higher, and a weaker USD would be a strong tailwind. As our friend JC Parets pointed out in a recent blog post, Bitcoin has consolidated over the past 2 years and is primed to make a big move higher. USD weakness may be a catalyst for Bitcoin breaking out to new highs.”
Not the Only Macro Factor Supporting BTC
A potential drop in the value of the U.S. dollar is far from the only macro factor that is supporting Bitcoin upside.
In May, billionaire hedge fund investor Paul Tudor Jones revealed that he supports the leading cryptocurrency. In a research note titled “The Great Monetary Inflation,” the macro investor said that because of the massive amounts of money printing going on, Bitcoin could rally.
Jones said that with such “unorthodox” monetary policy, there’s a good chance Bitcoin becomes the “fastest horse in the race.” Other “horses” he mentioned were bonds, stocks, real estate, and gold.
That’s to say, the hedge fund manager said that Bitcoin could be the best performing asset in the months and years ahead due to macroeconomic factors.
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
The U.S. Dollar Poises to Plunge: Here's Why That's Crucial for Bitcoin origin »
Bitcoin edged higher on Tuesday even as broader cryptocurrency markets posted a mixed performance and global financial markets paused amid the continuing conflict between Israel and Iran. Both stocks and digital assets fell sharply on Friday following renewed Israeli strikes but began to stabilize on Monday.
PBOC cuts rates, trims mortgage costs. Trade talks between US and China scheduled. Markets await FOMC guidance on policy shift. Bitcoin surged past $97,000 on Wednesday before settling above $96,000, as a confluence of global monetary moves stirred markets ahead of the Federal Reserve’s policy announcement.
Asian markets and U.S. stock futures experienced a downturn, with Bitcoin dropping over 2% to $56,300, reflecting a risk-off sentiment in financial markets following the presidential debate where Kamala Harris was perceived to outperform Donald Trump.
The current state of Bitcoin’s options and futures markets is witnessing a notable shift, reflecting a broader transformation in the crypto trading landscape. Over the last 12 months, Bitcoin options markets have seen a significant uptick in growth, with open interest more than doubling.
In almost all markets, the seller knows more than the buyer. With Bitcoin, that’s not the case. What does that mean for markets, regulation and even economics? Noelle Acheson digs in.
Since the first few months of 2022, Bitcoin and crypto space has maintained a bearish trend, though there were a few spikes to recall. Several markets, including the stock markets, are still facing a crisis.
The latest price moves in bitcoin (BTC) and crypto markets in context for Oct. 17, 2022. First Mover is CoinDesk’s daily newsletter that contextualizes the latest actions in the crypto markets.
Cryptocurrency markets have been trading sideways with no significant change for Bitcoin, Ethereum, BNB, and other significant crypto assets and have been holding support since Friday. Since the world’s markets are closed today and Bitcoin is tied to the stock market, we won’t see any movement today.
Bitcoin and stocks are almost trading in tandem again – as risky asset markets move in response to fresh developments in the economy and international affairs.
Bitcoin is currently down on the charts and has broken below $35,000 as at the time of this writing. As the crisis between Ukraine and Russia rages on, with reports of the latter already invading the former, the markets have taken a beating down even before the financial markets open for trading for the day.
Galaxy Digital founder Mike Novogratz has noticed “something different” going on with the crypto markets overall. Tweeting on 4 March, the Bitcoin maximalist believed that financial markets are amThe post Bitcoin effect: Understanding the 'giant paradigm shift' in markets appeared first on AMBCrypto.
Earlier this week, Bitcoin surmounted $12,000 as global markets surged as the U. S. dollar saw a notable collapse. The world’s reserve currency, though, has since reversed, dragging down global markets with it.
COVID-19 pandemic hit the world real bad and countries across the globe are currently in the process of recovery. The traditional markets and the crypto markets both saw a massive downward spiral throThe post Bitcoin: An elegant response to America's 'money manipulation' problem appeared first on AMBCrypto.
It would be fair to say that sentiment has shifted for all financial markets across the globe recently. Bitcoin has been no exception to this trend, and on-chain metrics may indicate where markets could be heading next.
The Bitcoin and cryptocurrency markets continue to shed billions as speculators in markets around the world exit en masse to cash. Some industry personalities expect markets to bounce hard as confusion calms.
History is unfolding right before our eyes. In years to come, several books will be authored regarding the happenings of the financial markets as it is. Yesterday, bitcoin endured heavy clobbering alongside traditional markets and safe-haven assets as coronavirus headlines stole the show.
Bitcoin might not be playing to the safe-haven narrative, but its contracts are certainty a "haven" of sorts.
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Digital asset markets had started to recover over the past day or so but the Bitcoin bulls could not overcome resistance levels. The correction has resumed with an almighty dump overnight. Cryptocurrency markets were just below $300 billion in terms of total capitalization when Bitcoin fell off a cliff.
Markets slipped across the board today after news of rocket attacks on the U. S. embassy in Baghdad. Bitcoin, however, is posting +3. 5% on the daily. Gold also ticked upward slightly. Despite Bitcoin’s upturn, markets are uneasy today as news on the coronavirus worsens and new rocket attacks took place against the U.
Bitcoin and the aggregated crypto markets have been caught within a firm bout of sideways trading since this past Saturday, with this lack of decisive momentum making it incredibly unclear as to where the markets...
Predictions forecasting future stance of bitcoin and crypto markets always make headlines. But what do the facts and data say? Blockchain analytics firm IntoTheBlock has come out with interesting insights which throw light on the current state of the BTC and digital asset markets.
The Bitcoin (BTC) market has evolved to include the simplest kind of derivative financial products – futures contracts. Those markets now reach $5 billion in daily volumes, taking a significant chunk from spot trading markets.
Bitcoin has fallen beneath the $7,000 psychological price range as global markets took a breather Saturday amid the ongoing trade dispute between the U.S and China.
Upheaval and unrest in established markets, like change and evolution in emerging markets, make a compelling case for Bitcoin adoption.
The post Op Ed: Wall St. May Support Bitcoin Adoption, But Markets of Unrest Are Key appeared first on Bitcoin Magazine.
By CCN Markets: August was a brutal month for investors across the world. Global stock markets shed $3 trillion as a dirty cocktail of recession warnings and trade war escalation rocked the markets.
The bitcoin price soared more than 10 percent over the last 24 hours, briefly hitting $11,840 on Coinbase. The surge higher coincides with a blistering selloff on the Asian stock markets, triggered by a breakdown in US-China trade relations.
Bitcoin and the aggregated crypto markets have been experiencing incredibly bullish buying pressure over the past several months, with BTC surging from year-to-date lows of below $4,000 to recently established highs around $13,800.
Digital asset markets jumped in value over the last 24 hours as most cryptocurrencies have gained 8-13%. Since our last markets update the entire cryptoconomy has increased by $33 billion and this Sunday bitcoin cash (BCH) lead the top ten pack once again with a 12.
Crypto markets back in action; Bitcoin surging above $6k, BCH and BSV following. Market Wrap Crypto markets have been bolstered back up to their highest levels of the year again today. There was no selloff in the wake of the Binance hack and Bitcoin has finally broke resistance and made it over the psychological barrier.
The year 2018 was generally not the greatest of years for most financial assets including stocks, bonds, the credit markets and also cryptocurrencies. The bear market experienced by the cryptocurrency sector in 2018 was so terrible that many naysayers had a field day dissecting the sector and its drop.
Crypto markets surge to new highs; Bitcoin on top, Bitcoin Cash and Litecoin lifted, Cosmos still cranking. Market Wrap It has been a great start to the weekend for cryptocurrencies as markets hit fresh 2019 highs.
Weekends are usually pretty inactive for crypto markets and this one has been no different. Total capitalization has hovered just above $170 billion for the past three days as Bitcoin has failed to register any.
It only took a day for the Bitcoin bashers to emerge from their caves and start spreading fear, uncertainty and doubt again. After four months of inactivity crypto markets came alive again this week and headed upwards to reach new 2019 highs.
Cryptocurrency markets have seen fresh gains over the last 48 hours and digital asset trade volume has spiked considerably. On Saturday, March 16, the entire cryptoconomy has a valuation of roughly $139 billion and global trade volumes are hovering around $33.
The past several days have been particularly volatile for the cryptocurrency markets, with Bitcoin (BTC) surging to highs of nearly $3,750 on Saturday before fully retracing to lows of $3,550. Despite this volatility, Bitcoin has been able to hold $3,550 as a level of support and has led the entire crypto markets to rise slightly.
Bitcoin has been unable to maintain above its previous support level around $3,600 and is now nearing the bottom of its recently established range between $3,550 and $4,200. Bitcoin’s price drop has led the general crypto markets to plunge, with many altcoins trading down 6% or more.
A research firm Diar, in a report that they published recently, noted that traditional and institutional investors in the cryptocurrency market prefer over the counter Bitcoin markets to the exchanges.
After a weekend of sideways trading, the cryptocurrency markets have jumped on Monday, with Bitcoin rising more than 5% and the overall crypto market capitalization rising to over $110 billion. Today’s price rise has led the markets to regain much of their losses that were incurred last Friday.
Bitcoin price failed to recover above $107,000. BTC is trimming gains and might could continue to move down if it trades below $102,500. Bitcoin started a fresh decline after it failed to clear $107,000.
Square, the payment services arm of Block, has launched its Bitcoin payment feature for small businesses, allowing them to accept BTC payments and manage their digital assets alongside traditional finances through its point-of-sale platform.
Eric Trump, son of US President Donald Trump and executive vice president of the Trump Organization, has revealed new bullish predictions for Bitcoin (BTC).
Bitcoin price is attempting to recover above $103,500. BTC could continue to move up if it clears the $106,500 resistance zone. Bitcoin started a decent recovery wave above the $103,500 support. The price is trading above $104,500 and the 100 hourly Simple moving average.
Bitcoin price is struggling below $105,000. BTC could continue to move down if it stays below the $104,200 resistance. Bitcoin started a fresh decline below the $104,000 support. The price is trading below $104,000 and the 100 hourly Simple moving average.
