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