Due to the known enemy: the decline of the US dollar, Bitcoin (BTC) could find new support for a record year 2021.

As emerged from various sources this week, the trading price of the US dollar against various currencies is close to its lowest level in three years, and the trading price against the Swiss franc is its lowest level in five years.

Analyst: The long-term trend is “clearly weak in the dollar”.
The weakness of the US dollar often leads to bitcoin strength, and 2020 is the year the US dollar currency index (DXY) becomes a reliable measure of price direction.

The reverse correlation is evident over the course of 2020. Although the relationship between Bitcoin and DXY recently collapsed, analysts still believe the new low is just good news for cryptocurrencies.

The renewed hope for a global economic recovery coupled with the new coronavirus stimulus package is the latest threat to the devastation of the dollar. DXY hit 91.1 on Tuesday, its lowest level since April 2018.

Tempus vice president of trade and commerce, John Doyle, told Reuters, “If there are reports that hope is shattered, a bipartisan business cycle agreement can be made, which is another reason for dollars to be sold and sold.”

The weekly index of the dollar index (DXY). Source: TradingView
Even the Bitcoin skeptic Peter Schiff, who, as always, likes gold, agrees with the fate of the dollar like crooks.

He said on Wednesday: “The exchange rate of the US dollar to the Swiss franc is currently at its lowest level since January 2015.”

“This is a harbinger of what is going to happen. The franc is leading the way, but other currencies will soon follow suit. 2021 could be the worst year in the history of the dollar, at least until 2022.”
Grayscale means accidental purchases of gold
At the same time, Schiff’s loyalty to gold could soon be rewarded as the precious metals rebound from their current underperformance.

Barry Silbert, the cryptocurrency founder of wealth management giant Grayscale, confirmed that the company resumed promoting “Bitcoin instead of gold” this month. This shows that the market believes gold has bottomed out.

“This is a big buy signal for gold traders,” replied senior investor Dan Tabiro (Dan Tabiro) on the news.

Yes, Barry is an excellent businessman, bitcoin visionary, and great person, but he is not an MKTS trader or portfolio manager. The last time I did this ad was May 19th, a few days before the 30% gold rally started. No matter how low the price is. “”

Source: CoinTelegraph