Cryptocurrency
Dollar dip meets hash rate boom: 5 things to watch in Bitcoin this week
Dollar dip meets hash rate boom: 5 things to watch in Bitcoin this week: As reported at Cointelegraph, “Analysts warn that U.S. dollar could return to its 2018 lows as Bitcoin fundamentals steam to new records this week. Bitcoin (BTC) starts the week above $11,000 as fresh gains continue to hold — is $12,000 next […]
Dollar dip meets hash rate boom: 5 things to watch in Bitcoin this week:
As reported at Cointelegraph, “Analysts warn that U.S. dollar could return to its 2018 lows as Bitcoin fundamentals steam to new records this week.
Bitcoin (BTC) starts the week above $11,000 as fresh gains continue to hold — is $12,000 next or will bears gain control?
Cointelegraph takes five factors that could help decide whether this week is bullish or bearish for BTC price action.
U.S. election could send dollar back to 2018
Bitcoin remains sensitive to macro phenomena as Q4 continues, and the U.S. election run-up could produce noticeable turbulence.
The outcome of a Democratic win looks bleak for one macro indicator in particular: the U.S. dollar currency index (DXY), analysts say.
In a report on Oct. 12 quoted by Bloomberg, Goldman Sachs warned that Joe Biden entering the White House could spook markets in advance, driving DXY down to its lows from 2018.
Bitcoin has historically seen strong inverse correlation with DXY, and fresh lows could thus be a boon for hodlers. In August, $12,500 highs for BTC/USD came in tandem with DXY dipping to just above 92 points. 2018 saw a dive to 89 — 4% lower than at present.
In addition, the roll-out of a coronavirus vaccine would serve to hinder, rather than help dollar strength…”