Neglect Elon, here is why Bitcoin merchants needs to be watching the US Greenback Index as an alternative By Cointelegraph

0

Forget about Elon, so Bitcoin traders should watch the US Dollar Index instead

(BTC) prices fell nearly 5% on June 4 and continued the decline in Friday’s session as investors grappled with Elon Musk’s cryptic tweets about the cryptocurrency, which sparked speculation that the CEO of Tesla (NASDAQ: ) could dispose of the company’s remaining 43,2000 BTC stash.

Nonetheless, Bitcoin’s downward movement also coincided with a large spike in (DXY), which sparked speculation that more than one factor accelerated the cryptocurrency’s dramatic collapse during the late Thursday and early Friday session.

Bitcoin’s decline after Musk’s tweet also coincided with a rebound in the U.S. dollar index market. Source: TradingView monthly US national debt since April 2020. Source: StatistaBitcoin and negative correlation of the US dollar index intact since March 2020. Source: TradingView

Read more on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained on this website is not necessarily real time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may incur as a result of using this data.

Fusion Media or any other person involved in Fusion Media assumes no liability for any loss or damage that may arise from reliance on the information contained on this website, including data, prices, charts and buy / sell signals. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment.

Leave A Reply

Your email address will not be published.