Bitcoin (BTC) can find new support in a record year 2021 thanks to the death of a known enemy – the US dollar.
As several sources pointed out this week, the US dollar is trading at its lowest level in almost three years against various currencies and at its lowest level in five years against the Swiss franc.
Analyst: Long-term trend “clear dollar weakness”
The dollar’s weakness tends to be stronger for Bitcoin, and 2020 was the year when the US Dollar Currency Index (DXY) became a reliable reference for determining the price direction.
A reverse relationship has been evident through 2020, and while Bitcoin’s relationship with DXY has recently broken, analysts remain convinced that the new downturns were only good news for the cryptocurrency.
The combination of renewed hopes for global economic recovery and a new stimulus package for coronavirus is the latest threat to undermine the dollar. DXY reached 91.1 on Tuesday, the lowest level since April 2018.
“When you receive a message that a bilateral stimulus agreement may be reached after the hope is shattered, there is another reason to outbid and sell dollars,” Tempus Vice President of Transactions and Trade John Doyle told Reuters.
Even bitcoin skeptic Peter Schiff, who has always loved gold completely, agreed with the scammers about the fate of the dollar.
“The US dollar is now trading at its lowest level against the Swiss franc since January 2015,” he said on Wednesday.
“This is a preacher of what is to come. The franc is in the lead, but other currencies will soon follow. 2021 could be the worst year for the US dollar until at least 2022. ”
Grayscale signals the purchase of gold in the event of an accident
Meanwhile, on the gold question, Schiff’s loyalty can soon be rewarded as precious metal has recovered from its current weak performance.
Barry Silbert, founder of crypto-asset management giant Grayscale, confirmed that he has resumed running a Bitcoin Not Gold ad this month, indicating that the market believes gold has bottomed out, an analyst said.
“A big buy signal for gold traders,” senior investor Dan Tabiro responded to the news.
Yes, Barry is a brilliant businessman, bitcoin visionary and a great guy, but he is not an MKTS trader or portfolio manager. I last made this ad on May 19, a few days before the 30% gold rally started. Low price again. “