Skip to content

The data shows that Bitcoin will receive the same boost that helped it hit $ 12,500

August 28, 2020

Bitcoin (BTC) is just inches away from receiving the same boost that helped it hit $ 12,500 earlier this month.

On August 28, the United States Dollar Currency Index (DXY)after the losses caused by a Federal Reserve speech, returned to crucial lows.

Bitcoin’s $ 12,000 momentum is reappearing

At the time of going to press on Friday, the DXY was 92.28, its lowest level since August 19th.. At this point the index had been falling for years; 92.17 marked the bottom that challenged floor prices since April 2018.

The data shows that Bitcoin will receive the same boost that helped it hit $ 12,500The data shows that Bitcoin will receive the same boost that helped it hit $ 12,500

Safe havens, including Bitcoin, appeared to benefit from DXY all summer it fell; Gold hit a high of $ 2,075 while BTC / USD peaked at $ 12,500 two weeks ago.

As an analyst at Cointelegraph Markets filbfilb stated on Friday that a repetition of the performance was planned. Federal Reserve Chairman Jerome Powell’s speech Thursday brought DXY down after days of profits.

Indeed, the impact on the US dollar could be the only significant exit from a “no-event” policy change for Bitcoin that many have been anticipating.

However, The impact on the rigidity of the fiat economy thanks to the Federal Reserve has been much more severe.

“Jerome Powell’s speech today will appear in the history books.”tweeted Andy Yee, Senior Director of Public Policy at Visa.

1 month chart of the US dollar currency index

One-month US dollar currency index. Source: TradingView

Fed bills are “good for the toughest assets,” gold and BTC

For the CEO of Real Vision Raoul PalPowell’s words confirmed that Bitcoin and gold would stay strong going forward, but bitcoin would win over investors.

“”I think both of them rise over time in terms of inflation or deflation“he told his Twitter followers.

“Most people don’t understand the latter, but simply put, Powell has shown that there is no tolerance for deflation, so they will do ANYTHING to stop it, and that’s good for two of the toughest assets, gold. and bitcoin. Powell WILL inflation. “

Even before the speech, Bitcoin supporters saw the long-term consequences of the Federal Reserve’s policy..

For Saifedean Ammous, author of the popular book “The Bitcoin Standard”, It was a matter of “time will tell” for Bitcoin versus Fiat..

“”The reduction in the new supply of Bitcoin has significantly reduced new sales in the market so it likely helped keep the price high or prevent it from falling further“he said on August 25th on the Unchained Podcast.

“The quantitative easing of central banks and helicopter money policies around the world and the issuing of checks to everyone seem to have done the same for the stock market. Now let’s wait and see how the two approaches work out over the long term. “

Receive Breaking News !

Enable Notifications    Ok No thanks