• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Sensei Inu Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Win 8.88 BTCTry
  • Play Casino GamesTry
  • Play FinanceTry
No Result
View All Result
Breaking News: BREAKING: Valkyrie Secures Green Light For Ethereum Futures ETF, Trading Launching Tomorrow
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Win 8.88 BTCTry
  • Play Casino GamesTry
  • Play FinanceTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: BREAKING: Valkyrie Secures Green Light For Ethereum Futures ETF, Trading Launching Tomorrow
bitcoin
Sensei Inu Logo

Analysts Think the U.S. Dollar May Bottom—and That’s Bad for Bitcoin

Nick Chong by Nick Chong
3 years ago
in Bitcoin
Reading Time: 3 mins read

Bitcoin has been under pressure over the past three days after peaking at $12,500 earlier this week. Some argue that the retracement is purely based on technicals. But if you check the charts, there seems to be an evident inverse correlation between the value of the U.S. dollar (as calculated by the Dollar Index) and BTC.

When the dollar rallies higher, the value of Bitcoin (and gold for that matter) has decreased. The drop to $11,500, where BTC trades as of this article’s writing, was seemingly spurred by a leg higher in the value of the U.S. dollar.

Bitcoin may get crushed further, though, as analysts have noted that the world’s reserve currency may be bottoming.

This comes after the USD was hit heavily due to trillions of dollars worth of stimulus by the U.S. government and the Federal Reserve.

Related Reading: Crypto Tidbits: MicroStrategy’s $250m Bitcoin Purchase, Ethereum DeFi Boom, BitMEX KYC

The U.S. Dollar Bottoming Could Harm Bitcoin Bull Case

The U.S. dollar may be finding a bottom after crashing from the March highs, which were spurred by a rush for liquidity as the pandemic began to spread.

One cryptocurrency and foreign currency trader shared the chart below, which suggests that the Dollar Index may be forming a bottom pattern. He says that this does not bode well for the bull cases for Bitcoin, Ethereum, gold, and silver:

“$DXY finally finding support? Keep an eye on this chart, if we regain that top level expect $BTC, $ETH, $Gold and $Silver to fall further.”

Image

Chart of the DXY over the past few months with a range analysis by crypto trader "Mayne" (@Tradermayne on Twitter). Chart from TradingView.com

This sentiment was echoed by other analysts. Another market commentator noted that the dollar’s recent price action is eerily reminiscent of a bottoming pattern — a trend could suppress BTC:

“Could be a bottoming formation for the dollar, which would be bad for $btc. I’ve personnaly taken a lot of profits and i’ll wait for a bit to see what happens.”

Could Change With Stimulus & Election

While the U.S. dollar may catch a bid in the near term, this could change if the U.S. government moves ahead with another stimulus package. A key driver that suppressed the dollar over recent months, analysts say, was the trillions in spending for stimulus packages.

What could also hurt the U.S. dollar is uncertainty around the presidential election just months away. Each candidate may have policies that put the value of the currency into the question.

If the U.S. dollar continues its descent, Bitcoin should continue to move higher as investors seek stores of wealth.

Related Reading: Crypto Tidbits: Dave Portnoy Drops Bitcoin, Tether Supports Ethereum’s OMG Network, DeFi Still Hot
Photo by Giorgio Trovato on Unsplash
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Analysts Think the U.S. Dollar May Bottoming—and That's Bad for Bitcoin
Tags: btcusdBTCUSDTusdxbtusd
Tweet123Share218ShareSend
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Bitcoin BTC price October

Bitcoin News: Analysts Reveal Forecasts For October As BTC Price Pushes Past $28,000

8 hours ago
Bitcoin price

Bitcoin Price Skyrockets Past $28,000, Here’s Why

13 hours ago
Bitcoin

Crypto Analyst Tips Bitcoin (BTC) To Reach $40,000 In Q4 2023

1 day ago
Why Is Bitcoin Price Up Today

Why Is Bitcoin Price Up Today? Insights From Leading Analysts

4 days ago
Bitcoin vs bonds

Bonds Out, Bitcoin In? Bloomberg Analyst Predicts Major Portfolio Shifts

4 days ago
Bitcoin monthly close September

Bitcoin Price Trend At Stake: How September’s Close Could Change Everything

5 days ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Press Releases

  • The Next Bull Run Is Approaching, Follow The Smart Money...

    8 hours ago
  • Index CFDs: Experts Have Conducted A Comprehensive Study In...

    11 hours ago
  • Unbelievable: Tradecurve (TCRV) Skyrockets, Leaving...

    13 hours ago
  • Microsoft’s AI Reveals the Holy Trinity of Profit...

    13 hours ago
  • Investing in Trading 212: Is the Risk Worth the Reward?

    2 days ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Win 8.88 BTC
  • Play Casino Games
  • Play Finance

© 2023 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.