Bitcoin has been growing tirelessly over the past few weeks, and analysts are beginning to speculate on how much Bitcoin could threaten the US dollar itself.
Bull Bitcoin
In recent weeks, Bitcoin has been demonstrated in such a way that it touches the new annual maximum almost every other day. The most important cryptocurrency in the world even exceeded its price maximum from 2018.
US financial sector analysts believe that with the rising price of Bitcoin, the dollar should fall below during the ongoing presidential election. With the election of Joe Biden, the US dollar should go down. Chief Investment Analysts David Bailin and Steven Wieting of Citi Private Bank stated:
“Winning newly elected President Joe Biden means a return to conventional governance. This will lead to a fundamental shift in the way foreign policy is implemented. The flow of money to emerging markets will cause value migration from the US dollar to foreign assets. “
The US dollar’s foreign exchange index fell 1.92 percent last week after Biden gained the lead over US President Donald Trump. Concerns about high US dollar inflation due to the stimulus packages being accepted due to the Covid-19 pandemic also do not add optimistic prospects.
Investors Paul Tudor Jones and Stan Druckenmiller said Bitcoin was an ideal hedge against the bearish outlook for the US dollar. Independent analyst Michael van de Poppe said it was clear that we were in the early stages of a new bull cycle.
At the time of writing, the price of BTC is around $ 16,700 KMC.
Conclusion
If everything goes according to plan, we can expect the historical maximum to be exceeded in the near future. The well-known analyst PlanB even expects that in 2021 we will touch the value of USD 100,000 for one BTC coin. Find out more in our regular technical analyzes.
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