Bitcoin Uptrends While USD Dollar Prices Decline

With declining prices of USD dollars, Bitcoin traders are now hoping that bitcoin will uptrend.

By Komal Joshi · Aug 8, 2020 . 5min read

The USD dollar is currently testing the bottom of a 12-year trendline. For some traders, it is the “most significant moment” for the global reserve currency since 2008. They believe that the continuous fall in price will increase Bitcoin’s price (BTC). Since April, the dollar is declining against other reserve currencies. Prominent cryptocurrency trader Scott Melker tweeted about the same:

$DXY

This is arguably the most pivotal moment we have seen for the United States Dollar since it bottomed in 2008.

This channel has been intact for over 10 years. If it breaks down, hide yo' kids and buy a metric ton of #bitcoin. pic.twitter.com/eKSanHWHSu

— The Wolf Of All Streets (@scottmelker) August 3, 2020

Scott Melker tweeted about the rise and fall in the prices of Dollar and Bitcoin

Significant Uptrend in Bitcoin

Traders are optimistic about the near-term trend of Bitcoin. Traders are now hoping that the decline in the dollar will increase uptrend bitcoin. Bitcoin trading activity reaches new highs in several markets. It also includes institutional venues like the CME and its BTC futures contracts. The open interest of the CME Bitcoin futures market has risen to an all-time high in current weeks. This enables accredited and institutional investors to engage in higher activity.

The Rise and Fall in Gold and U.S. Dollar

The decline in the U.S. dollar can elucidate the rise in gold. The convergence of an unstable dollar and the rapidly growing demand for gold fuels the momentum of BTC. This, in turn, has boosted global demand for safe-haven assets like precious metals. Moreover, when gold price rises, several of the USD dollars that are still being continuously traded start to proceed to Bitcoin and other digital currency markets.

When the upward curve becomes steeper, USDT proceeds to rise. This is as per the data from Coinmetrics, particularly in July. Simultaneously, the upward momentum of gold has decreased down a bit, intimating that more USD dollars have started to flow into the digital currency market for coins than before. If the dollar prices continue to decline, there is a huge opportunity that Bitcoin’s price will be boosted.

Follow Cryptodose for more updates.