The weakening inverse correlation meant that issues pertinent to U.S. dollar movement would have little significance for BTC.has been found to be negatively tied to the U.S. Dollar . This essentially means that if the price of one asset rallies, the other one falls and vice versa., the inverse correlation between BTC and the USD fell from -61% to -10 on a year-to-date basis, which was almost negligible.Established by the U.S. Federal Reserve, the U.S.
Throughput 2022, the dollar index outperformed other currencies, surging to a two-decade high of 114.18 in September, as the U.S. central bank resorted to large increases to bring down inflation. DXY strengthened more than 8% in 2023, as per TradingView.In contrast to the above trajectory, the broader crypto market was battling the punitive bear phase around the same time. Bitcoin crashed to lows of $16,000, losing nearly 65% of its value in 2o22.
On the other hand, the dollar index, after moving sideways for much of the year, plummeted to a 15-month low last week. This came on the heels of encouraging U.S. inflation data last week, raising optimism that the cycle of Fed’s aggressive supply hikes would eventually come to a halt. Consider the U.S. banking crisis in March, exacerbated by the collapse of some of the biggest lenders like Silicon Valley Bank and Signature Bank. During this period, BTC jumped by nearly 40%.This temporary respite was quicklyin the very next month when weak U.S. job data impacted the dollar, leading to the reemergence of the negative relationship, albeit at a very low level.
Coin Coin Latest News, Coin Coin Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Source: CryptoAmb - 🏆 22. / 68 Read more »
Source: CryptoAmb - 🏆 22. / 68 Read more »