Bitcoin (BTC) may face a sharp rise in prices this week when the US Dollar Currency Index (DXY) weakens and the analyst asks US voters to buy.

Data showed that the DXY decline on the fourth day, October 1, as negotiations continue in Washington on a new stimulus package for coronavirus.

Vays: “Buy Bitcoin” no matter who wins the US election.
DXY and BTC / USD have shown a strong inverse correlation in recent months. DXY’s recent gains have not translated into strong pressure from Bitcoin sellers, but new losses could support BTC’s long-term bulls.

DXY’s fortunes have changed as the US Senate tries to negotiate a new coronavirus relief deal, which could be worth $ 2.5 trillion.

Speaking to FOX Business on Wednesday, Secretary of State Steven Mnuchin confirmed that negotiations are underway, but any agreement will include a new round of $ 1,200 incentive checks for eligible U.S. citizens.

“The good news is that we have agreed that if there is an agreement, there are direct payments that are similar to the last time they were in the package,” he said.

Mnuchin spoke after a day of heated debate between President Donald Trump and presidential candidate Joe Biden.

When the tension arose, popular trader Ton Weiss tried to capture the attention of online viewers by saying that no matter who took control of the White House, printing money like the one used to fund stimulus packages would continue to destroy the dollar.

“No matter who wins, they will keep writing, so buy bitcoins,” Weiss wrote in a chat during the debate broadcast.

Bitcoin DXY correlation stops rejection
Meanwhile, the fall in recent days is beginning to change the relationship between DXY and Bitcoin, the data show.

Comparison of the 90-day correlation of bitcoin returns to the DXY, Gold, VIX and S&P 500, compiled using Analytics digital asset data, reached the bottom at the end of September.

In contrast, BTC / USD remained closely tied to both gold and the S&P 500 until October, when Bitcoin’s price became the second-best quarter on record, closing the month above $ 10,600.

But according to the Cointelegraph, not everyone believes that the situation will continue. Bitcoin should soon be completely separate from traditional markets.

Source: CoinTelegraph

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