Boom for Bitcoin to lower dollar calls from macro analysts

Bitcoin and the US dollar are no longer concerned about their inverse correlation around 2021. The flagship cryptocurrency ended the first quarter higher than 100% as more and more organizations got used to the functionality of the security domain. For example, US automaker Tesla announced that it sees cryptocurrency as a store of value, replacing its $ 1.5 billion cash reserve with bitcoin. This was a clear example of how a large corporation preferred Bitcoin over the dollar, especially assuming that the latter will lose value against other fiat currencies after closing the previous year at 6.80%. The analogy itself followed a set of dollar sell predictions, making Bitcoin an emerging safe-haven alternative, an attractive asset for investors. But the strong consensus that the dollar is weakening began to break in 2021. The US dollar index, which tracks the value of the dollar against the other six major currencies, rose 3.6% in the first quarter. The US dollar index recovered 3.43 percent from its lowest level during the session. Source: DXY on TradingView.com It then dropped 1%, increasing its yearly trend. The index rose mainly due to the low performance of foreign currencies and the increase in inflation expectations in the US, with President Joe Biden's $ 1.9 trillion stimulus package. This recovery resulted in a strong liquidation in the bond market. This raised yields, making government debt more attractive to foreign investors, especially in Japan, where the yen fell 7.5% against the dollar in the first quarter. However, many macroeconomic analysts are convinced that the dollar will fall. Zach Pandl, co-director of Goldman Sachs' global currency, interest rates and emerging markets strategy, reiterated his previous stance on the weak dollar, saying a recovery in the euro would pull the dollar down. I have a little c Read more

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