Fun

Bitcoin price tied to US dollar performance, not politics, custodian says

News Feed - 2024-07-23 05:07:00

Ana Paula Pereira3 hours agoBitcoin price tied to US dollar performance, not politics, custodian saysMarket expectations of a weakening US dollar may be behind Bitcoin’s recent surge, overshadowing election speculation.2064 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin’s recent price surge may be less about speculation over the United States elections and more about market expectations of a weakening US dollar.


According to a July 22 analysis by crypto custodian Copper, an increasing likelihood of former US President Donald Trump winning a second term in the November elections has led to a rally in prices. However, the movement could be tied to “market expectations that the US dollar will lose ground against other currencies, as it has historically under a Republican White House.”


Bitcoin (BTC) price has rallied more than 6% in the past seven days, jumping from roughly $63,500 on July 15 to around $68,000 at the time of writing.


The report notes that Bitcoin’s market behavior often mirrors that of other major fiat currencies, which rally when the US Dollar Index (DXY) declines. This trend was noticeable in 2017 and 2021 when BTC reached all-time highs as the dollar weakened.


The US dollar has decreased by 10% on average during periods when a Republican president has been in office since 1969 — indicating a weaker US dollar relative to other major currencies. On the other hand, the dollar has increased by 8% on average during periods when a Democratic president has been in office since 1969.DXY Index change under administrations. Source: Copper


“Bitcoin’s dynamics are more complex with a tendency to move in the opposite direction of the US dollar’s strength or weakness. Additionally, any administration which delivers growth would likely see investors returning to more volatile asset classes,” noted Copper’s head of research, Fadi Aboualfa.


According to Copper’s analysis, it’s not the absolute strength of the DXY that matters but rather market expectations about its future performance:“Should markets continue to anticipate a Republican win this year, there might be an assumption of potential for the US dollar to weaken, especially considering it is currently trading at its highest level since 2002.”DXY performance


Between 2013 and 2016, during President Barack Obama’s Democratic administration, the DXY rose by 25%. This increase can be attributed to several factors, including the economic recovery following the 2008 financial crisis, overall improved economic conditions in the US compared to other major economies, and growing expectations that the Federal Reserve would eventually begin hiking interest rates. 


In contrast, between 2017 and 2020, under the Republican administration of Donald Trump, the DXY declined by 7%. This period saw significant tax cuts, which initially boosted economic growth but also led to concerns about rising fiscal deficits. Trade tensions and tariffs imposed on other countries have also contributed to a more volatile dollar.


Since 2021, under the Biden administration, the DXY has increased by 14%, according to Copper’s analysis. A combination of factors such as higher inflation expectations, the Federal Reserve’s actions to combat inflation by raising interest rates, and global uncertainties have contributed to the rise of the greenback over the past few years.


Magazine:Pudgy Penguins lands in Pixelverse, Ether ETFs, and more: Hodler’s Digest, July 14-20# Bitcoin# Dollar# Business# United States# Donald TrumpAdd reaction

News Feed

Solving the blockchain trilemma with decentralized scalability
Cointelegraph14 hours agoSolving the blockchain trilemma with decentralized scalabilityThis podcast is produced in collaboration with the Metis network and explores the role of layer-2 solutions in providing fast, secure
Blockchain Firm Asks Nevada State for Permission to Build a Crypto ‘Smart City’ in Storey County
Blockchain Firm Asks Nevada State for Permission to Build a Crypto "Smart City" in Storey County A crypto “smart city” could become a reality in Neva
Zimbabwean Minister Says Cryptocurrency Based Solutions ‘Could Lower Charges for Diaspora Remittances’
Zimbabwean Minister Says Cryptocurrency Based Solutions "Could Lower Charges for Diaspora Remittances" The Zimbabwean minister of finance, Mthuli Ncube, has once again talked up th
Cameroonian Fintech Ejara Raises $8 Million in Series A Investment Round
Cameroonian Fintech Ejara Raises $8 Million in Series A Investment Round Just over 12 months after raising $2 million, the Cameroonian fintech whose app allows users to buy and sto
Analyst Says XRP Price Is Ready For A Breakout As Metrics Turn Bullish, What To Expect
Este artículo también está disponible en español. Crypto analyst Random Crypto Pal has predicted that the XRP price is finally ready for a breakout, just as on-chain metr
BTC Proxy Announces Strategic Partnership With Blockchain․com to Expand Bitcoin DeFi Ecosystem
BTC Proxy Announces Strategic Partnership With Blockchain․com to Expand Bitcoin DeFi Ecosystem press release PRESS RELEASE. BTC Proxy, the Bitcoin Liquidity Protocol on Polygon, h
Who Profited During Bitcoin’s $100,000 Surge? Analyst Breaks Down the Data
Este artículo también está disponible en español. Bitcoin ongoing price movement has sparked intense analysis as it continues to hover below the $100,000 mark. Despite re
Report: Blockchain Price Oracle Manipulation Produces Millions in Losses, Shows No Signs of Slowing
Report: Blockchain Price Oracle Manipulation Produces Millions in Losses, Shows No Signs of Slowing On November 9, a writer from the website samczsun.com publish
PODCAST: Ikigai’s Travis Kling on Why Bitcoin Is a ‘Baby X-Man’
“Bitcoin is unequivocally a macro asset,” said Travis Kling, the former hedge funder and now founder and CIO of Ikigai Asset Management. “It is a fledgling macro asset,” Kli
Report: Binance US Struggles to Secure Banking Partner Amid Regulatory Crackdown on Crypto Industry
Report: Binance US Struggles to Secure Banking Partner Amid Regulatory Crackdown on Crypto Industry Following the collapse of Silvergate Bank, Silicon Valley Bank, and Signature Ba
Crypto trading firm Cumberland secures New York BitLicense
Turner Wright4 hours agoCrypto trading firm Cumberland secures New York BitLicenseThe New York State Department of Financial Services lists 33 companies holding licenses, allowing them to offer crypto-related products an
David Attlee36 minutes agoCanada to develop repository for storing crypto and NFT seizuresThe Royal Canadian Mounted Police is seeking a digital asset solution to facilitate the seizure and storage of cryptocurrency and