您现在的位置是:BTCUSD has a lot of room to catch up with the DXY >>正文
BTCUSD has a lot of room to catch up with the DXY
上海品茶网 - 夜上海最新论坛社区 - 上海千花论坛57人已围观
简介Bitcoin traded above $68k in November 2021 in what seemed to be a massive squeeze higher. But the en...
Bitcoin traded above $68k in November 2021 in what seemed to be a massive squeeze higher. But the enthusiasm quickly faded.
In a little more than one year, hodlers saw their patience put to the test. The leading cryptocurrency fell back to earth, trading below $20k and triggering massive liquidations in many parts of the cryptocurrency industry.
Plenty of factors have contributed to the “crypto winter” we’ve seen lately, such as the ongoing dollar’s strength as a result of the Fed’s tightening cycle. Yet, the Fed’s policy and the dollar’s strength might support Bitcoin’s recovery in the months ahead.
BTC/USD weakness was too extreme
The Federal Reserve, like other major central banks in the world, raised the interest rates to fight inflation. So naturally, the US dollar strengthened as the tightening cycle was one (still is) of the steepest ever.
The dollar gained across the FX dashboard – and against cryptocurrencies too. However, a simple comparison between the DXY gains and the BTC/USD weakness shows that Bitcoin’s weakness was too extreme.
BTCUSD chart by TradingView
The daily chart above shows both the DXY and the BTC/USD exchange rate and how the two performed in a little more than 13 months. While the DXY gained about 20%, the BTC/USD exchange rate dropped more than 75% from its 2021 highs.
Therefore, the current bounce might be just the start of a stronger move higher for the BTC/USD exchange rate. In other words, the exchange rate has a lot of room to catch up with the dollar index.
Deteriorating US outlook
While the Federal Reserve will still hike at its upcoming meeting, the US outlook is deteriorating fast. At this pace, one might expect a recession in the year’s second half and, thus a reverse in the Fed’s policy.
A deteriorating outlook for the world’s largest economy would spell trouble for the US dollar. Given the BTC/USD reaction to a strong DXY, then the exchange rate might rally even more as the dollar index corrects.
All in all, Bitcoin looks well-positioned to take advantage of the upcoming dollar weakness. The more the DXY falls from its highs, the stronger the BTC/USD rally will be.
Tags:
转载:欢迎各位朋友分享到网络,但转载请说明文章出处“上海品茶网 - 夜上海最新论坛社区 - 上海千花论坛”。http://www.jz08.com.cn/news/771248.html
相关文章
Binance users in Belgium to access services via Polish arm
BTCUSD has a lot of room to catch up with the DXYBinance users in Belgium can continue accessing services via its Poland-based unit.The exchange had...
阅读更多
The stars could provide the foundation for better cybersecurity
BTCUSD has a lot of room to catch up with the DXYBy subscribing, you agree to our Terms of Use and Policies You may unsubscribe at any time.To improv...
阅读更多
Gunk protection? NASA tweaks Voyager software for a surprising reason
BTCUSD has a lot of room to catch up with the DXYBy subscribing, you agree to our Terms of Use and Policies You may unsubscribe at any time.NASA miss...
阅读更多
热门文章
- Meet Avocado, the aerial
- Solana ecosystem tokens worth keeping an eye on: LINK, WAVES, GRT and AUDIO
- Indian firm unveils home
- Bored Ape Yacht Club raises $450 million, one week after launching ApeCoin
- VIDEO: GXO test humanoid robot at SPANX warehouse
- Optimism, Circle partnership brings native USDC to OP Mainnet
最新文章
PancakeSwap expands to Ethereum L2 platform Linea
Highlights March 7: Major cryptos in the red, UK100 suffers
Adobe’s Behance announces support for Phantom Wallet
Cardano (ADA) could hit the lowest price this year in the coming days
XDC price prediction as coin rallies by 31% in a week
Scientists produce clean energy from chicken feathers