Exchange rate data collected by businessman and market commentator Alistair Millen shows that bitcoin was worth seven more currencies than ever before.
Milne: More currencies will come later
Bitcoin’s weekly gains hit over 15% during Wednesday night, when BTC / USD hit $ 13,200 before returning to a level of $ 12,800.
The rate of change surprised many and came at a time when fiat currencies in many countries – especially the currencies of developing countries – were suffering from the coronavirus and the impact of the economic response from central banks.
Bitcoin last traded at around $ 13,000, and even when it reached a full-time high of $ 20,000 at the end of 2017, the economic picture was very different.
In Brazil, for example, where 1 BTC is now buying more riyals than ever before, depositors saw their currency weaken 28% against the US dollar in one year.
Brazil, with 209 million inhabitants, was the most populous country on Milne’s list. Other countries include Turkey, Argentina and Venezuela, where the total population of all participating countries is 450 million.
In addition, Milne expected that Russia and Colombia would soon join, and “all other fiat currencies” would join him at some point.
The US dollar stands before the battle
Meanwhile, Bitcoin’s reverse correlation with the US dollar index remained in the spotlight as the trend continued.
The DXY measures the strength of the US dollar against a basket of trading partners’ currencies and fell to a time-limited 92.72 in October, which coincides with the renewed strength of bitcoin.
Analysts warn that the fallout from the upcoming US election could lead to more volatility in the dollar.
Miles Rutan of Bytown Capital wrote earlier this month: “If the DXY closes below the 92.5 structure, it will support any inflationary assets such as commodities and gold, as well as growth stocks.”
However, the increase in Bitcoin has led to ads leaving the connection to traditional macro assets.