The increase in global liquidity and the slimming in the US dollar may be a harbinger of a new rise for the crypto currency market. According to experts Bitcoin (BTC) positive conditions come together, which can open the door to a large price movement.
Bitcoin strengthens as the US dollar weakens
In the middle of the week US dollarsThe lowest level of the four months coincided with the recovery in the European stock exchanges. Many major indices, including FTSE 100, compensated a significant portion of its recent losses. The wick of these developments is the US President Donald Trumpwarnings about customs tariffs fired. The explanations on this side gave rise to the expectation that it could cause a short -term shake in the markets.
As the dollar weakens, it is clear that Bitcoin gains strength. US Dollar Index (DXY) measures the power of the dollar against other major currencies and is currently very close to the critical 97-98 level. If DXY falls under this threshold, Bitcoin will be able to gain a new rise acceleration.
DXY’s performance crypto currency on the radar of investors. In technical analysis, sagging below this level is usually interpreted as a harbinger of a new wave of rise for Bitcoin.
Global money supply can break a record
Bitwise Research Head Andre Dragoschemphasized that global money supply is on the way to reach new peaks. According to him, this situation creates a “dreamy” environment for Bitcoin. Dragosch described the DXY graph, which shows the decline of the dollar, as “today’s most bull graph ve and said that the largest crypto currency has a serious potential over this graph.
It is noteworthy that the dollar does not perform strong performance despite the new administration. Moreover, existing customs tariffs still put pressure on investor confidence. Under such pressures, risky assets, especially crypto currencies such as Bitcoin, become more attractive.
In parallel with these comments of Dragosch, optimism is increasing in the market. Investors believe that a similar scenario can re -operate by remembering the rise in the past periods of liquidity in the past. Popular crypto money analyst Colin Talks Crypto also supported this optimistic perspective. M2 of money supply data closely follows the analyst, a new Bitcoin rally thinks that the door.
Despite the recent wave of liquidity, the expectations of Bitcoin and other crypto currencies are strengthened with this new wave of liquidity. According to Colin, this time the rally can be strong enough to be “epic ..
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
