That peak was also when the dollar was at its weakest in the last five years, but the DXY Dollar Currency Index shows that the greenback is nearing a similar low point, on the heels of ongoing stimulus money printing and being on the cusp of printing more.
Interestingly, McCullough sold his Bitcoin recently, only to buy it back last week ahead of the big impulse to ,000. Data McCullough shared on Twitter shows BTC beating out gold, Brent Oil, the S&P 500, and the CRB Index as the most inversely correlated asset to the dollar.
Risk Management Firm CEO: Bitcoin Is The Best Macro Correlation Versus A Devalued Dollar
Featured Image From Deposit Photos, Charts From TradingView.com
One CEO of a risk management firm that educates investors on how to protect capital, claims that the leading cryptocurrency by market cap “remains the best short-term macro correlation” versus a “devalued dollar.” Here’s what that could mean and how that could benefit investors in what could be a very bleak future.
— Keith McCullough (@KeithMcCullough) October 23, 2020
During periods when the dollar fell in the past, Bitcoin had its most explosive bull runs.
RELATED READING | DOLLAR INDEX FRACTAL SUGGESTS AN INCREDIBLE ALTCOIN SEASON IS ON THE HORIZON
RELATED READING | BITCOIN SETS NEW ALL-TIME HIGH IN THESE GLOBAL CURRENCIES
What USD Dying Means For The Next Cryptocurrency Bull Market
For one, when demand outstrips supply, prices run parabolic. And because the cryptocurrency has such a limited supply, it is directly opposed to the dollar and the potential next successor as the global reserve currency should it lose that status.
Bitcoin is quickly becoming the most likely candidate to do so and remains the “best short-term macro correlation” versus a dollar that has been in decline since the pandemic began, according to Hedgeye Risk Management CEO Keith McCullough. Bitcoin’s bullishness is enhanced when the dollar becomes bearish | Source: BTCUSD on TradingView.com
If the DXY plunges deep, the catalyst for Bitcoin’s next bull run is here, and it is primarily due to the design choice to hard-cap the asset at just a 21 million supply. It was done to ensure its value only strengthens as the dollar weakens. And as data shows, it is doing as it was intended.
The rarity gives the crypto asset a quality like a commodity and imposes a unique impact on the normal supply and demand dynamics. All markets are driven by these dynamics, but in Bitcoin, the relatively low supply and block reward reduction caused the asset to behave very differently than others.
During a time when money has become more difficult to come by for many, and the fiat monetary system is on the brink of collapse, Bitcoin might be the best chance at protecting wealth.
#BITCOIN: remains the best short-term macro correlation vs. a Devalued Dollar pic.twitter.com/vpJliX0pEF
Send bulk sms with Bitcoin and don’t worry If your link gets reported. We are constantly monitoring your links and We’ll pause your campaigns if any issue…