The USD has „more room to fall“; 5 things to keep in mind about Bitcoin this week
Bitcoin (BTC) is headed for a bullish start for another week of trading after retreating to reach USD 11,700.
Cointelegraph takes a look at five things that could shape price performance in the coming days after BTC/USD saw little impact on futures and Fed settlements last week.
Jameson Lopp warns people not to take opinions on social networks so literally
Stocks rose to higher levels
In a classic continuation of the horrifying post-coronavirus configuration, the stock markets are headed even higher on Monday.
Despite the difficulties they face many after months of sporadic coronavirus quarantines and associated economic difficulties, large-cap stocks worldwide show no signs of falling.
The Dow Jones made rapid progress before moving slightly towards the end of the trade, with a 0.5% rise in the day. In the United States, S&P 500 futures also rose modestly by 0.3% at the close of this edition.
Progress comes as geopolitical tensions also rise; the US and China are discussing issues such as the forced sale of the social networking platform TikTok, planned by Washington.
Speaking with Bloomberg, however, one analyst sounded more like a Bitcoin bull when describing the stock picture.
„I don’t see what’s going to change people’s perspective on why we should stop buying,“ Randy Frederick, vice president of trading and derivatives for U.S. financial services giant Charles Schwab, told the publication Saturday.
DeFi-mania continues: total value blocked reaches USD 9 billion
Dollar index rebounds after recent drop
After most of the macroeconomic assets suffered losses in the Fed’s speech on Thursday, Bitcoin has made a remarkable change, however. Since the speech, the BTC/USD has risen more than 4.2%.
The same goes for gold, which also recovered over the weekend. Interestingly, the DXY, which reached its two-year lows after Thursday, has also recovered. Analysts continue to observe an inverse correlation between the two assets.
At the time of this edition, Bitcoin was at around USD 11,600, after reaching USD 11,720 in an early morning rally. Despite the widespread momentum following the Fed’s release, the consensus among Bitcoin commentators remains that long-term policy will drive interest in hedging against the dollar.
„Powell’s speech is as much about jobs as it is about inflation. The Federal Reserve wants full and healthy jobs and is expanding the way it looks at them,“ wrote Mike Novogratz, CEO of Galaxy Digital.
„Inflation will be tolerated in order to achieve these goals. Bullish on gold. Bullish on BTC.“
If the DXY stock continues its inverse relationship with Bitcoin, the major cryptomone may receive an additional boost sooner rather than later.
„The dollar has much more room to fall than most people realize,“ summed up gold optimist Peter Schiff, pointing to another Bloomberg article in which investment company Pimco warned that the dollar’s decline was beginning.