Dollar drops 2% as risky assets recover
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is rallying on previous strength, hitting a high of $21,473 on Bitstamp – a new seven-week high.
The pair benefited from the latest US economic data, while the dollar, on the contrary, suffered. The US Dollar Index (DXY) lost 2% in a single day for the first time in years, which helped fuel the asset’s rising risk.
US Dollar Index (DXY) 1-day candlestick chart. Source: TradingView
“With this in mind, Bitcoin has shaken off all the rallies, increased volume and returned to above $21,000,” commented Michael van de Poppe, CEO and founder of trading firm Eight.
“I am assuming we will continue towards $22.5K from here, but have a slight correction before continuing (as we took out all the liquidity). Buy dive season.”
Annotated BTC/USD chart. Source: Michaël van de Poppe / Twitter
BTC was previously known for its lack of volatility and tight trading range, which helped it beat stocks even for the first time ever.
“For the first time in history, Bitcoin has become less volatile than both the S&P 500 and the Nasdaq,” Yassin Al-Manjar, crypto analyst at ARK Invest, pointed to the company’s latest report, “The Bitcoin Monthly.”
“The last time volatility was low, bitcoin went from $9,000 to $60,000 in less than a year.”
Bitcoin vs. S&P500 vs. Nasdaq Composite Volatility Chart. Source: Yassin El Manjra / Twitter
Meanwhile, Tyler Winklevoss, co-founder of trading platform Gemini, revealed his belief that cryptocurrency markets will continue to act as a leading indicator of the overall market trajectory, as in 2021.
Crypto was the first asset class to crash; He will be the first to do anew, summed up.
Bitcoin is more stable than major fiat currencies
Continuing the topic of low volatility, the ARK report, led by well-known analyst David Boyle, showed that it wasn’t just stocks being undermined by the stability of Bitcoin.
Related Topics: Why is the Cryptocurrency Market Rising Today?
“Bitcoin’s relative volatility has decreased not only for stocks, but also for major currency pairs. With the increase in overall uncertainty and the strength of the US dollar, forex pairs have been negatively affected while bitcoin has been relatively stable,” Bitcoin Monthly reported.
“Bitcoin’s 30-day volatility roughly equals that of the pound and the euro for the first time since October 2016. Although the Fed’s tightening could continue to fluctuate, the strength of bitcoin relative to foreign currencies is an encouraging sign.”
BTC/USD volatility against the EUR and GBP chart (screenshot). Source: ARK Invest
As Cointelegraph reported, another popular analyst, LookIntoBitcoin creator Philip Swift, predicted the end of the current bear market by the beginning of 2023.
The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risks, you should do your own research when making a decision.
