Let's see, in the last 6 months bitcoin went from less than $20 to over $250 and then crashed back to around $60. Since then it has oscillated between the $160 to $80 range and most recently has kind of been bouncing around in the low $100 range for a few months.
In 6 months the dollar has...well, it did some stuff too. But these last 7 weeks, look out! Very high degree of correlation there.
Topic: Bitcoin Prices Follow Dollar with 0.89 Correlation - page 2. (Read 2802 times)
All this means is that 90% of the trades happening are by speculators who are buying and selling dollars with btc. When the dollar starts crashing there will more than likely be a flight from USD to BTC which would completely defy this trend.
USD is rapidly losing trust. Other countries are switching to other things as reserve currencies like Canadian, Australian, and Chinese.
They can read how all we do is print more, making it more and more worthless i.e. merely fiat. Some think Ft Knox is actually empty and filled with gold-plated lead bricks.
They can read how all we do is print more, making it more and more worthless i.e. merely fiat. Some think Ft Knox is actually empty and filled with gold-plated lead bricks.
If this is the case, then we are screwed as many think the dollar is in imminent danger of at least a temporary huge drop in the near future. I'm not holding onto more than $1K worth of BTC till the dust settles. Great time to buy more silver anyways. ;-)
My guess is:
Atm the dollar is still trusted, so if
people want to get away from other assets -> go in $ and Btc
But if the trust in dollars disappears, Bitcoin is likely to be freed from this correlation.
Quote from: Abandon's sig
Trust the birds
If this is the case, then we are screwed as many think the dollar is in imminent danger of at least a temporary huge drop in the near future. I'm not holding onto more than $1K worth of BTC till the dust settles. Great time to buy more silver anyways. ;-)
There seems to be quite a bit of denial about this. Something like: "Bitcoin couldn't possibly follow a doomed fiat currency."
It's not that bitcoin is following the value of the dollar so much as it's following the dollar's rhythm.
It's not that bitcoin is following the value of the dollar so much as it's following the dollar's rhythm.
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