Topic: USD prices speculation (Read 451 times)

They are a biggest economy but not a healthy or healthiest economy. The world and US. debt clocks show this fact.

https://www.usdebtclock.org/world-debt-clock.html
https://www.usdebtclock.org/index.html

The demand for the dollar increases when international parties, such as foreign citizens, foreign central banks, or foreign financial institutions demand more dollars.When the dollar is traded, three factors can drive its value, including supply and demand, market sentiment,and technical market data.

 Normally,people beleive that crypto prices are have also influenced and impacted USD and vice versa.Historically,studies have shown diffrence between the price of Bitcoin and the value of the U.S. dollar. This means that when the dollar is strong,the price of Bitcoin tends to fall,and vice versa.Honestly,I clearly don't know how that concept operates.

The reason why US dollar is so strong is because the other currencies are not. Since their currencies are weak they tend to look outside of their nations and take advantage of the difference between their currencies. If I am earning us dollars in my country where the currency is much weaker than the us dollar then that is highly profitable for me.

If our currency is already strong then why look for us dollar right?

Whoever wrote that article has no understanding of the economy
Specially since they are comparing USD with Japanese Yen and interest rates.

Let me put it simply.
When Japan prints money (lets say a million dollar equivalent) that money is only going to be used domestically inside Japan and it only enters Japanese economy. Simultaneously when the Japanese government wants to sell any bonds they pretty much sell it domestically to Japanese so that also stays domestically.
On the other hand when US prints money (a million dollar) that money is used globally and enters global economy. When they increase interest rates and sell bonds they also sell it globally.

So for example the $1 million US printed is going to be used by Saudi Arabia to sell its oil to Japan and the bond US printed and dumped on the world is also going to be bought by Japan. So now Japan is facing 2 inflations: First is the one caused by the $1 million they printed themselves and Second is the $1 million US printed and they used. Meanwhile they are also using the little money they have left to buy US bonds to help US economy stay up instead of using that domestically to improve their own economy

This is not called "US economy booming", it is called a Ponzi scheme at its peak.

Otherwise a healthy and booming economy does not have:
1. A high inflation
2. A high interest rates
3. A government that prints $1 trillion every 100 days
4. A massive trade deficit
5. A massive national debt ($35 trillion) and growing

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So things are pretty much the same as 6 years ago when you started this topic.
The more the world dedollarises, the more they decouple from the Ponzi scheme known as US economy so the more their own respective currencies strengthen and the more US dollar weakens.

If they do the opposite and do less dedollarisation, use more US dollar and increase their dependence on the Ponzi scheme, the more their own respective currencies dumps and the more their economies weaken while US dollar strengthens.
This goes on until we see another catastrophe like 2008 when the Ponzi scheme falls apart and it significantly and negatively affects global economy. More effects on those who didn't dedollarise...

from what I have read, on the contrary, strengthening the world economy will weaken demand for US dollars because other countries feel that US dollars are not profitable.


Of course, from what I've read, geopolitics really influences the demand for US dollars around the world, but the impact of war usually quite affects the demand for US dollars because many countries are trying to secure their assets.

There are many factors that affect the strength of the US dollar.

One of them is what you already have mentioned. When another nation goes under crisis, they will try to look for other ways to save their money or multiply it even under crisis. Typically they will buy assets that are sold in US dollar hence why its value goes up.
Fiat specifically the US dollar are kind of the opposite of one another.

If the US dollar is so strong and it is what is used to buy crypto, then not many people might be so inclined to buy crypto with USD.

Main factor must be Global Economic Conditions. Economic conditions in other countries, particularly major trading partners, influence the demand for the USD. A stronger global economy can increase demand for the USD as a safe haven currency.

And also Political instability or uncertainty in the US or other countries can impact investor confidence and the demand for the USD.

➥ They Bet Against the Dollar. Now They’re Paying the Price.

Since bitcoin is a global currency, I'd say that it could be a possibility that through the UUSD's appreciation, its price against the USD may have depreciated as well, since all prices are relative to each other. Essentially, demand for BTC from other country may have fallen due to the USD hike.

But that's just a theory. No one knows for sure what exactly the cause of the price drop is, I personally think it's just normal market activity.

You're wrong in assuming that rising USD prices mean that other countries suffer inflation - they don't. Some exporting countries may even enjoy the rise in USD prices which makes their own exports more competitive. It does make imports from the USA more expensive, though.

Simply because of his strategy
Trump is on the right track. He is a great leader and he is helping the US economy go up a lot. I support his policies and other countries are paying for the excessive use of American artificial intelligence.

I think the price increase of the dollar does not affect the decline in asset prices in the market, but with rising dollar prices the prices of all altcoin cryptocurrency assets will increase if exchanged for local money, because I see the sale and purchase of cryptocurrency using dollar money as the main money.

Today their is some raise in bitcoin price .This is the positive movement in the price of bitcoin.In a week the price of bitcoin is reduced to 900$ ,now their is some positive movement.So if you want to get reasonable profit from your investment, choose the bitcoin to inverse your money.And USD had affect the price of bitcoin in a couple of days.But this is not a permanent one.

When countries have a crisis, their currencies lose value. they also replace the money in their hands with the more valuable currencies. so that the damage can be minimal. If this currency is dollar, then a crypto currency that will appreciate against the dollar will make more sense.

The possibility is still 50 to 50 the increase in the USD has an effect on the decline in crypto prices in the last few days. I look more at other perspectives regarding the price reduction that occurs due to the rejection of various exchange and trading services against bitcoin on the grounds that bitcoin does not have clear regulations.

In autumn the exchange rate of the dollar is constantly rising. I do not think this will affect the growth or fall of the BTC.

You use dollars to buy cryptographic coin and sell dollars. I think this has no effect on the cryptographic market. Since USD is just Fiat that we all need to use every day.

Interesting thought. Do you think that the fluctuation in bitcoin prices depend on the USD exchange rate?

This might be the cause of Trump banning tarifs in trades(?). Many countries have risen inflation rates when this happened at it is starting to affect the crytocurrency market as well.

It seems to me that the growth of inflation in developing countries and countries of the "third world" is connected with trade disputes between the US and China, as well as the growth of political and economic instability in the United States. The price increase in USD outside the US has always been.

If your local currency loses in value against the dollar and you have funds in the crypto currency, then rejoice, because your asset is growing. What you see is not the growth of the dollar against local currencies, it is the fall of local currencies. Therefore, this situation does not affect the prices of crypto currency.

I doubt whether there is any clear cut correlation between fiat and bitcoin rise or fall. Bear and Bull has not been pegged to a rise ior fall in one fiat. Although, the increase in USD rate may have negative effects on some developing country which economy is basically surviving on importation but not on crypto.

This year USD prices continued to rise as investors were looking for clues about the rate of interest rate increases. This year's strengthening dollar was held back by concerns over intensified trade disputes between the United States and China. For influence on the crypto market, it seems very small

I think the increase in the price of dollars does not have a negative impact on the cryptocurrency market, but I am sad to see inflation happening in some countries, and poor people like me are increasingly choked with this inflation.

You can see that the dollar is rising because the Fed is raising interest rates, which has made the dollar rise and of course you can also see that the import and export of America will be very difficult. USD strengthened. This is not good for the US and it is reported that the Fed will have another adjustment to raise interest rates in the coming months.

It doesn't necessarily mean the USD is getting stronger, it may just be the other currencies are getting weaker against the USD. It doesn't impact on cryptos

Good sir, you do know that most 3rd world currencies are backed by USD and not GOLD right? So if you think that USD going strong does not mean inflation and it does not mean anything to a country's economy, you are wrong. Considering the world economy, we will be seeing more how USD get stronger and other world currency to go down. And that thing is really really bad.

The increase can be said to be very stressful for other governments. Maybe this happened because of economic pressures and this also affected the crypto decline.

This rising USD against other country's currencies has a very lasting impact on all economic commodities including crypto currencies, many people are affected to expose their bitcoin because they are tempted to get USD and exchanged on their country's currency automatically they will get many benefits , but on the other hand they are not aware that what they do will make prices fall deeper

The impact of USD fluctuations on cryptocurrencies market is very insignificant so far, like other persons have mentioned the real impact is for people with fiat currencies in crisis such as turkish liras and venezuelian currencies. It might have a bigger impact in the future yes but right now no, crypto is in a bear market that s all.

Its happening because of the devaluation of currency in Iran, Venezuela, and Turkey, all these countries are experience inflation so the citizens are moving over to USD.

I think this has nothing to do with the current rise in the USD. USD or Fiat is regulated by the central bank, regulated by the government, while bitcoin does not regulate it, there is no connection between the increase in the USD and the decrease in BTC at this time.

USD going strong does not mean inflation.

Inflation is something internal to an economy, and essentially means a rise in prices due to the debasement of currency or easy credit. However, USD rising in relation to that particular currency doesn't necessarily mean that prices in that country is all of a sudden going to soar. Only imports from the US will increase in price, and that is only a small proportion of the goods on the market.

Nor does it mean "crisis", unless you're the one actively trading USD and holding a long position on it, because some countries actually actively devaluing their currency to be more competitive.

Most in the market are into USD, which will drive them into that currency.
like in cryptocurrency. most of alts are connected in BTC value.
while BTC has the USD value which can affect the alts USD value.

Most likely this is due to the fact that there is political pressure.

So, do you think bitcoin will be okay with rising USD prices?

Most of the global trades are happening against the USD currency and not to forget that with their country itself. Thus they always dominate the market whenever rest of the countries are suffering from the set back of financial crisis. I don’t belive that crypto currency has got any relations with the USD and/or other fiat currency inflation because they both stand in the different spheres of financial system. What we see in the crypto market always changes according to the internal and external news.

In the last few days, I looked at the exchange rate and saw an increase in USD in any currency so some countries experienced inflation and crisis. I don't understand why the USD can rise so high. Does this also affect the decline in the crypto market?