How Will The Pandemic Recovery Affect Bitcoin?

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The pandemic is ending and with it sooner or later the emergency measures will be eased both where it concerns economic restrictions and economic support. That’s still some months away but the dollar is already strengthening, rising from 89 to 92 this month. That’s presumably because the market does not expect any further devaluation than what is already known and perhaps even expects some monetary tightening in the months ahead. A strengthening dollar means a devaluing yuan and China has been somewhat more bullish on bitcoin than USA for the past few days. Bitcoin’s global nature therefore may cushion it from country specific factors, but the narrative for much of last year was that bitcoin is a hedge against a devaluing dollar. Now that the dollar is strengthening, that narrative might not be as strong, however inflation is expected as once there is a full opening up, there might be…

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