US Dollar’s Boom in 2021 Puts Bitcoin Price Rally At Risk of Faltering

tUdHmSRG 980x567

Many Bitcoin strategists and investors started 2021 with deep-rooted convictions that the US dollar would weaken. But so far into the year, their predictions have proven to be false. While Bitcoin has gained 73 percent against the dollar since the start of January, extending its uptrend further since the pandemic rout in March 2020, the greenback is trading higher against a basket of top foreign currencies—a metric known as the US dollar index. It is up 2.52 percent this year. Bitcoin aficionados expected the dollar to plunge, given the Federal Reserve’s efforts to keep interest rates near-zero through its infinite bond-buying policy. In addition, trades and analysts forecasted that the greenback would suffer from worries over growing debt levels in the US that might restrict growth. US dollar index retraces amid positive growth forecasts for the US. Source: DXY on TradingView.com But now, the US economy is gunning for growth,…

Read the original article here

IF YOU LIKED THIS ARTICLE CLICK SHARE