you are looking for something that doesn't exist in my opinion!
can US dollar decline lead to more bitcoin adoption? yes but it is not the reason for bitcoin's rise. bitcoin is rising nonetheless because of the adoption that it has but at the same time economical changes affects bitcoin too. bitcoin is also an investment so it is only logical to think people look to it for a place to store their money and make some profit when economy is not good.
Topic: BTC correlation to the USD, an inverse relationship? (Read 134 times)
I was looking at the prices of the USD ('king dollar') and BTC overlapped on a chart this evening. It is a daily line chart with BTC in red and the UDS (represented by DXY) in blue. The chart starts off at the beginning of 2017.
You can see that the USD was in a decline at the start of 2017 and BTC was rising slowly. (To rise parabolicly towards the end of the year)
Then around mid summer they were both rallying to the upside noted with the black box.
Then in December, they both started a decline noted with the purple boxes.
Coincidence?
I think the short term correlation (if any) is temporary and is a bit of an anomaly. If people loose confidence in fiat currency, they would rather spend the money on tangible items instead of allowing inflation to slowly reduce their purchasing power.
Gold and Silver was the 'go to' hard asset in the past, the advent of BTC/Blockchain has now taken over this role.
A weekly look at the same USD & BTC since 2015.
You have a different longer term perspective and it is apparent that the USD is in a decline since 2017 and BTC is on an uptrend. There is an inverse relationship.
I'll speculate that the USD will continue to decline in the next few years. One reason is that it would make U.S. made products easier for other countries to purchase. (And this administration is all in for that).
With the (potential) decline in the UDS, BTC 'should' continue to appreciate. Opinions?
You can see that the USD was in a decline at the start of 2017 and BTC was rising slowly. (To rise parabolicly towards the end of the year)
Then around mid summer they were both rallying to the upside noted with the black box.
Then in December, they both started a decline noted with the purple boxes.
Coincidence?
I think the short term correlation (if any) is temporary and is a bit of an anomaly. If people loose confidence in fiat currency, they would rather spend the money on tangible items instead of allowing inflation to slowly reduce their purchasing power.
Gold and Silver was the 'go to' hard asset in the past, the advent of BTC/Blockchain has now taken over this role.
A weekly look at the same USD & BTC since 2015.
You have a different longer term perspective and it is apparent that the USD is in a decline since 2017 and BTC is on an uptrend. There is an inverse relationship.
I'll speculate that the USD will continue to decline in the next few years. One reason is that it would make U.S. made products easier for other countries to purchase. (And this administration is all in for that).
With the (potential) decline in the UDS, BTC 'should' continue to appreciate. Opinions?
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