US Dollar at 3 year Lows as Bitcoin resumes uptrend

Bitcoin has been rising again in an effort to hit its all-time $111 970 high.

“The dollar index is dabbling in new cycle lows today,” macroeconomist Lyn Alden said On Wednesday, I posted a message. “Barely got any flight-to-safety bid in the past couple weeks, either,” Alden added.

“Fiat is fading,” Says an analyst

Jamie Coutts of Real Vision Crypto analyst echoed similar sentiments said You can also find out more about us here. “fiat is fading.” At the time of publishing, the US Dollar Index, which measures the strength of the USD against major world currencies, was trading at its lowest level since February 2022. It stood at 97.50. according TradingView is a great source of data.

The tensions are now at a similar level to what they were on 13 June, when the first spike in tensions occurred after Israel began airstrikes against Iran.

When this happens, participants in the market expect to see a switch from higher-risk assets such as cryptocurrency into more stable options like US dollars or government bonds. In October 2024, there will be a large missile strike by Iran targeting sites across Israel The DXY spiked 2.67% in the last month.

Bitcoin traders are celebrating its recent gains

Bitcoin (Bitcoin) has been gaining in popularity during recent conflicts, even though the US Dollar is not a major currency.BTC) experienced volatility.

Bitcoin briefly fell under $100,000 Sunday morning for the very first time since mid-May. But since US president Donald Trump’s fragile ceasefire took effect It has recovered since Monday and is now trading at $107,930 as of the date of this publication. according CoinMarketCap Data 

Matthew Hyland, Crypto analyst said This is the “bulls are in control,” Others have pointed out Bitcoin’s resilience in recent times despite the risk off conditions.

The emerging crypto market is the new trade today

“Bitcoin has broken two 2-week downtrends over the past month,” Crypto analyst Rekt Capital said Tuesday is a Wednesday.

Real Vision’s Coutts has drawn comparisons with the macroeconomic environment of early 2000s. A weakening US dollar led to capital flowing into commodities and emerging market countries.

“If you remember 2002–2008, the last major dollar depreciation lit a fire under EM equities and commodities,” Coutts stated.

Related: Bitcoin bulls halt $4K BTC price dip as US dollar hits new 3-year lows

“EM outperformed DM by 3x as capital chased high-growth, young economies — giving rise to BRICS,” He added that crypto is the emerging new market.

“Crypto is today’s EM. Capital is moving where the energy is,” “He said”

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This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.