June 2014 – Feb 2015: Inverse Relation Confirmed
From June 2014, as the US Dollar Index started its upward journey, the BTC-USD pair witnessed a strong downtrend. The inverse relationship lasted until the February of this year when the unprecedented rally in the U.S. Dollar Index petered out.
March 2015 – Oct 2015: Sideways Consolidation
During the said period, the U.S. Dollar Index entered into a 9-month long (approx.) sideways consolidation. When the U.S. Fed decided to hold off on raising the interest rates in the Oct meeting, it became clear that the official announcement would be made in the Dec meeting. In the anticipation of this event, the U.S. Dollar gave a breakout and reached an all-time high of 100.51.
Surprisingly, during the same time, the Bitcoin price also broke above its resistance and hit $500 in no time. An aggressive speculative interest in Bitcoin pushed the pair higher during this time.
Current Scenario and Future Price Expectations
Currently, both the currencies in the BTC-USD pair – BTC being the lead currency and USD being the base currency – are attracting strong bullish action. All eyes are now
http://bitcoinwarrior.net/2015/12/who-will-win-this-battle-us-dollar-or-bitcoin/
