The dollar index fell sharply today, continuing its decline for 10 months, reaching its lowest level since April 2018.
“The decline in the dollar is due to the economic hopes of the United States; Bitcoin has reached an all-time high,” the international news agency Reuters said in its headline. The article indicated that this decline is related to the second COVID relief bill being discussed today in Congress and US Treasury Secretary Steve Mnuchin (Steve Mnuchin) and House Speaker Nancy Pelosi (Nancy Pelosi) have resumed negotiations. The article compared the decline of the US dollar with the price of bitcoin, which briefly crossed its historic high for the second day in a row on Tuesday.
“They look like 2024 headlines,” Eric Voorhees, ShapeShift CEO and longtime Bitcoin attorney, wrote in Reuters headlines.
Some Bitcoiners compared the Reuters headline with the popular The Times headline included in the Bitcoin Genesis block: “The Minister is on the verge of a second bank bailout,” and indicated the importance of the change from now to now.
Historically, Reuters is not known for its positive coverage of Bitcoin, but this situation could change. Last week, the news agency published a story looking at the possibility of Bitcoin’s target price of $ 100,000 by the end of 2021. Last week, a story was published about the difference between this year’s “bubble” and 2017.
The dollar index measures the value of the dollar relative to a basket of other currencies: the euro, the yen, the British pound, the Canadian dollar, the Swedish krona and the Swiss franc.
Starting with relative value in 1973, the index reached an all-time high of 151 in October 1984 and a historic low of 71.8 in April 2008. It is currently 91.1. Half of the low decline has yet to be observed. One year more than two years.
Over the years, the US dollar has also declined against many other currencies and heavily traded assets, including many commodities and stocks. Since the start of this year, as the US government has tried to ease the pressure of COVID-19 in the form of economic stimulus, the US dollar has accelerated the depreciation of the US dollar due to inflation. Experts say this will help push the price of BTC to a record high.