BTC CORRELATION TO USD CONFIRMED. HYPER INFLATION WILL RALLY BTC
I haven't posted in years, and have only slightly tracked crypto alongside my fundamental portfolio. I Traded technical analysis for my first few years of trading, then realized it was not a sustainable and even enjoyable way of investing. I have made much more money (and slept better), since trading strictly via fundamentals. Upon seeing bitcoins latest correction I took to the Crypto public chat and was not surprised to see the same fear-mongering bears. "It's breaking the most important support, the 100 length 1hr SMA".
The chart on the left is the US dollar index (DXY). It's calculated by taking the relative average change between USD and the top 6 currencies.
The chart on the right is Bitcoin/USD derived from the Coinbase exchange.
I believe there is a true correlation between USD and BTC, and this recent pullback is proving its significance. If the institutional money is truly here and BTC is being used as a hedge against the hyperinflation, which will soon ensue, then such a move is very very important. When the Dems trillion-dollar spending plan is finalized, you can then expect BTC to react accordingly.
I will say though, if too many pleb retail investors get scared here it could spark a longer-term bear market than this. Of course, if you are a passive investor you wouldn't worry about this, since such a disconnect between true valuation and market valuation will always be beaten in the long term by fundamentals.
DXY
BTCUSD
The chart on the left is the US dollar index (DXY). It's calculated by taking the relative average change between USD and the top 6 currencies.
The chart on the right is Bitcoin/USD derived from the Coinbase exchange.
I believe there is a true correlation between USD and BTC, and this recent pullback is proving its significance. If the institutional money is truly here and BTC is being used as a hedge against the hyperinflation, which will soon ensue, then such a move is very very important. When the Dems trillion-dollar spending plan is finalized, you can then expect BTC to react accordingly.
I will say though, if too many pleb retail investors get scared here it could spark a longer-term bear market than this. Of course, if you are a passive investor you wouldn't worry about this, since such a disconnect between true valuation and market valuation will always be beaten in the long term by fundamentals.
DXY
BTCUSD