The Dollar Drop May Have Helped Push Bitcoin Past $11K

published 28.07.2020 13:27

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Bitcoin Price Chart Source: TradingView It’s a remarkable development in the bitcoin market, where investors, as recently as last week, were despairing that the oldest and largest cryptocurrency had been stuck in a range between $9,000 and $10,000 for the past two months.

“Given gold has just set a new all-time high, and with bitcoin’s correlation to stocks breaking down while being replaced by a strong correlation to gold, we envisage further tests to the upside this coming week,” the cryptocurrency-trading firm Diginex wrote in a daily market report.

Year-to-date performance of bitcoin versus other key assets Source: TradingView The U.S. Dollar Currency Index, a gauge of the greenback’s value versus other major currencies like the euro and yen, has fallen for seven straight sessions; the Wall Street firm Goldman Sachs predicts the dollar could lose another 5% over the next 12 months.

With interest rates already close to zero, no major policy changes are expected, but the cryptocurrency investment fund Arca noted Monday that a sell-off in the U.S. stock market might provoke the U.S. central bank to respond.

Tweet of the day Bitcoin watch BTC: Price: $10,773 (BPI) | 24-Hr High: $11,395 | 24-Hr Low: $10,215 Trend: Bitcoin is witnessing a low-volume technical pullback on Tuesday.

by Daniel Cawrey from coindesk.com

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