Bitcoin Rise Due to Lower US Dollar?

[Viscore]

We have witnessed the last 2017 Bullrun but we don't hear about the declining sentiment of USD before. It is just like it happens today, we can't either to say that USD losing its value, no it is not. What I see this is that people are investing Bitcoin this time, quite different in the past days. Nothing it correlates with the low market demand for USD cos it never looks like that and it seems too far for a real happening.

[Raflesia]

@OP, the rise of Bitcoin price and some altcoins is not because US dollar is weakening, no they are not because it never happens that simple. We have this price spike it is because there is an increase of crypto demand, people are investing crypto these days more than a thing that they invest in local stock market.

The demand in the market is increasing and also many people have believed in bitcoin to be invested in the future or the rest in the long term, maybe because seeing the movement that is so significant that many people are complacent and want to start a business with bitcoin and other crypto, isn't this the beginning well where bitcoin has grown again on its own.

[sana54210]

Bitcoin peaked over $12k again while economy is recovering in most nations as well, which shows you that it is not due to dollar lowering because while dollar was not lowering the price still increased, that is why I think it is important to notice why bitcoin is strong. When dollar loses its value bitcoin increases against dollar since fiat lost its value, however bitcoin still increases in value because dollar basically gains value but bitcoin gains even faster.

So, as you can see if bitcoin wants to go up, there is nothing that could stop it, dollar or economy or gold or stock market there is nothing that can stop bitcoin and it will go up if people want to buy it, if it goes down that means there is nothing that can stop bitcoin going down neither but hopefully that doesn't happen to frequently.

[DoublerHunter]

^ The deflation of the value of dollars is caused by documented information and current events which is caused by less amount of gold, investments and the circulating source, On the Other Hand, Bitcoin is Volatile Means there's no fortuneteller who can foretell the price on the next few days, unlike the value of the dollar that can be predicted by the means of sources.

[jrrsparkles]

Weakening of US dollar value is not contributing towards the bullish trend on bitcoin, it is just due to the people are moving to the assets from theor cash deposits and it is happening everywhere in the world.

[STT]

I usually refer to the dollar index which is a range of central bank FIAT currency.   So a really common component of the dollar index value would be the Euro exchange rate and also Japan, two major trading partners of USA.     The thing where it gets spongy is Japan holds 1 trillion of US dollar treasury debt which means some value is lent to the dollar exchange rate and so the index.    This is true in general that because alot of debt is stored in dollar terms we dont know fully the true exchange rates, the theory being the debt system is not sustainable and dollar is liable to lose alot of value and so then all prices rise greatly.   It will mean extremely weak US Dollar, possibly a complete unwind of a global currency system in place since ww2 and a new paradigm.   
  I dont personally think crypto takes over though IMF has proposed some standard involving their own self made blockchain, thats not going to alter that BTC probably is alot more resilient during this period of weakness and many switch dollars to BTC and the price rises greatly.

Look for 24.95 on UUP which if we recover above and keep a low this week onwards is some possible turn around, UUP is a ETF for bullish Dollar

[hulla]

Lower in the price of dollars doesnt contributed to the surge in price of bitcoin cause US dollars have experienced some lower price before the pandemic and it does not impact any surge in price and what I believe lower price of USD impacted was the price of Gold.
Which I believe Buffet investment in gold is enough as an example.

Different people with different viewpoint.

[carlfebz2]

We have witnessed the last 2017 Bullrun but we don't hear about the declining sentiment of USD before. It is just like it happens today, we can't either to say that USD losing its value, no it is not. What I see this is that people are investing Bitcoin this time, quite different in the past days. Nothing it correlates with the low market demand for USD cos it never looks like that and it seems too far for a real happening.

People do really love on correlating things even if it isnt really that relevant nor does have any sense at all if we do consider on how the market behaves.Its totally unpredictable and

theres no sentiment or factors can really be precisely based of for it to become a reason on the current movement we are into.Lower US dollar value? Im not saying its irrelevant but

people shouldnt really easily believe on this kind of reasoning.Whatever the reason is, its still unknown to anybody but its good to look at these kind of numbers once again.

[DeathAngel]

The entire fiat system is collapsing in front of our very eyes. This is only the beginning, bitcoin is the key to your financial security. Do not get left in the cold as a debt slave.

[exstasie]

It's obviously going up due to the self fulfilling prophecy of the halving it does it every single time because people with money know they can keep this pattern going and pump it after the halving.
They will keep doing this until the price gets to high to pump any longer.

Or it's just organic supply and demand. How could we tell the difference? That's the problem with conspiracy theories about whales. They can't be proven one way or the other.

I am skeptical of Tether and websites like bitmex having a lot of control over the price.

I am skeptical Bitmex has as much control over the price as people think. As for Tether, they and Bitfinex represent a massive chunk of the crypto economy in terms of volume and liquidity. Those will always be determining factors for price discovery.

[royalfestus]

Bitcoin is a reliable asset and has shown to at least make profit to every investor in 3 years irrespective of how high the price of the purchase was. THose time of bull run there was no pandemic and the value of dollar was good, I dont understand how the devalution of dollar at the this time made the different. DEFI wasn't responsible and ethereum wasnt relevant in the OP's opinion. The devaluation of dollar is for time and I believe things will get back after USA election, either Trump wins or lose

[shoreno]

Weakening of US dollar value is not contributing towards the bullish trend on bitcoin, it is just due to the people are moving to the assets from theor cash deposits and it is happening everywhere in the world.

what if people use thier dollar to buy btc ?  but im not sure if dollars  value can lower that way because that how crypto work . when you spend your crypto the overall value of crypto decrease  but one thing is for sure and that is the btc value increase when people purchase it .  

The entire fiat system is collapsing in front of our very eyes. This is only the beginning, bitcoin is the key to your financial security. Do not get left in the cold as a debt slave.

we cant be sure with that because btc can also collapse as much as fiat do  but the collapse of fiat system give people an idea to invest on btc and other assets for security purpose .

[el kaka22]

You have to realize two things, first of all lets say that dollar going down could effect bitcoin, that is not really important but lets say that is true, would that also mean bitcoin would go down if dollar gains some strength?

Secondly and most importantly, bitcoin is something that goes up when people buy more bitcoin than they sell it, there is literally NOTHING else that would make it go up, this is not a company, this is not a stock or share, this is bitcoin and the price only changes depending on how people trade it and that's it.

This means if dollar gains value or loses value is irrelevant, if people see dollar losing value and comes to crypto that could be the situation but even there people sees dollar lose value but they do end up buying bitcoin which is the only thing that makes it go up.

[exstasie]

Secondly and most importantly, bitcoin is something that goes up when people buy more bitcoin than they sell it, there is literally NOTHING else that would make it go up, this is not a company, this is not a stock or share, this is bitcoin and the price only changes depending on how people trade it and that's it.

The same thing applies to any investment asset, including stocks. Stocks have a limited number of shares issued so they are ruled by supply and demand, just the same as Bitcoin.

This means if dollar gains value or loses value is irrelevant

Personally I am skeptical of a concrete causal connection, but it's definitely possible. There is lots of capital tied up in dollar-denominated debt and bonds. As yields drop, it only makes sense that those investors exit for markets with better returns, meaning risk assets like stocks, BTC, and gold.

[wxa7115]

Bitcoin rise because bitcoin is a very valuable currency, .....

Bitcoin is always a valuable currency, from almost nothing to $12,000 now, that's the definition of valuable assets.
However, this coin does not only rise all the time, it has its bear and bull market and it's just that we are in the bull market right now, that $12,000 is a good price already, the market keeps bouncing every time it was dumped and that makes this year a good year for bitcoin so far.

So, is it due to USD struggling or the USA economy is? I also think so as we have investors from US who knows where their economy is heading, and they have already find a way to save their investments and that is flowing it to crypto especially on bitcoin.

To me it is clear that both the US dollar and their economy is struggling, it seems the politicians think that they can print as many dollars as they want and that there are not going to be repercussions in the future, there are some countries that are already avoiding the US dollar on their transactions and instead they are exchanging their own currencies and if this tendency continues then the dominance of the US dollar is going to diminish weakening its economy in the process.

And when you add that the United States has been one of the countries that has been hit the hardest by the pandemic and that tens of million of people lost their jobs and that those jobs are probably not going to be recovered in a very long time then we can conclude the economy of the United States is going to be in trouble for some time.

[bitgolden]

Bitcoin falls/rises because of higher/lower "fiat" not just us dollar. I know that us dollar is actually what bitcoin is pegged on and there is really all the talks about how much bitcoin worths with dollar and we calculate the rises and falls like that.

However just because it is pegged to dollar when we are calculating or discussing doesn't mean that is the only thing it is affected by. When a third world country has a bad economy, the people there go into crypto as well to save their money too, that is really the only thing you can hope for and I believe there is really no reason to just think dollar is the only thing that affects it. So by all means us dollar do effect bitcoin but that doesn't mean that others do not, all fiats do end up effecting bitcoin and its price.

[Kelvinid]

No, we might say that investors are losing their hands into the stock market and shifted to crypto investment. In fact, not only Bitcoin do the surge but also some altcoins.
Do we think that once US dollar value rises bitcoin value will dump? It certainly not a thing to expect with. It is only a coincidence that it looks like that, the market dumps while Bitcoin price keeps on rising but it is not a factor that wholely affects the trend.

It just happens that people are now realizing that Bitcoin investment is worth it this time while the pandemic isn't over yet. I'm sure, they'll soon come back investing local stock market once the crisis is done.

[Ridwan Fauzi]

It just happens that people are now realizing that Bitcoin investment is worth it this time while the pandemic isn't over yet. I'm sure, they'll soon come back investing local stock market once the crisis is done.

Yeah, I heard a several times ago that bitcoin's price movement was like SP 500 but it didn't happen anymore even if we compare with gold price movement bitcoin is more like it. So, we don't need to make the same between conventional asset who actually managed by one party and bitcoin.

But, you may be wrong when you say the investor will back to conventional investment if the economic situation back to normal. Because, as far as I know the intention for investor to store their money for investing is to get money and I'm sure bitcoin has given a lot of profit if they came when the economy crisis appear because bitcoin has risen for more than $6000 for three months back.

[STT]

FED statement was yesterday and the take seems to be more weakness for dollar, basically seems like it will lose this recent low and continue on trend to lose value.

https://www.ft.com/content/99e2d049-a585-4a64-b89f-f2f0bb482906


I guess thats helping BTC to continue in the long term in a positive gradient, its a macro measurement not a direction indication and imo we have already lost most of % dollar for this year but just the outlook being negative is enough to encourage speculators in Bitcoin and a variety of assets alternate to dollar and the ongoing QE program.

[atjiat]

According to the official statements of Goldman Sachs Bank, the dollar will show a depreciation for a long time and this situation has a very positive effect on bitcoin, since the depreciation of fiat currencies forces a large number of investors to switch to the side of the cryptocurrency market. Of course, the value of the dollar can change in accordance with changes in many factors, which include real US rates, as well as the performance of the economy. But it seems to me that the dollar could strengthen significantly after the National Convention of the Republican Party, which was held on August 24. If, as a result of this event, the gap between Joe Biden and Donald Trump narrows, then the dollar will begin to strengthen.