Bitcoin vs. the Dollar (Traditional Money vs. Digital Innovation)

[Sinzu_]

The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape. These two organizations stand for opposing ideals—one rooted in conventional financial institutions, the other a forerunner of the digital age. The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change. My question is this, why does the value of BTC decrease when the value of the dollar rises?

[NotATether]

They are not 1 - to - 1 correlated.

Nobody really pays attention when the dollar goes down during inflation, because everything is denominated in dollars. Therefore, when you see BTC price go up, that can mean either two things - the market demand of Bitcoin is increasing, or the US dollar is losing value because of inflation while Bitcoin stays at the same demand.

Same is true in reverse - when BTC value goes down, it doesn't necessarily mean that dollar is also going up, perhaps the dollar is remaining at the same value while BTC's own demand diminishes.

[bayu7adi]

Between Bitcoin and USD, their correlation operates inversely. In simpler terms, when investors flock to a strengthening asset, let's say the asset gaining strength is USD, the interest in alternative assets like Bitcoin tends to decrease. This triggers selling pressure that significantly impacts prices. Naturally, investors have to decide which asset is more stable, meaning the one that's gaining strength at that time.

However, in certain instances of Bitcoin's price movement, things don't always unfold as anticipated. For instance, during a global economic crisis, people seek out a Safe Haven Asset. As of now, I would place gold at the top tier of Safe Haven Assets. Consequently, both USD and BTC might experience panicked selling.

[Oshosondy]

My question is this, why does the value of BTC decrease when the value of the dollar rises?

They are indirectly proportional. But do not let it deceives you, when you see the price of bitcoin falling, people are selling bitcoin is what that is happening.

If you see bitcoin rising, people are buying bitcoin.


Although after some long period, dollar devaluation will become noticable but people do not see it as it is kind of hidden unless you are expert enough to calculate it.

[sesterceshop]

Think of Bitcoin like a financial superhero that comes to the rescue when the value of the dollar takes a hit. When the dollar's value goes down, Bitcoin tends to rise in value. This is because Bitcoin is like a treasure chest with only 21 million coins inside, making it really rare and special. So, when inflation shows up, people find Bitcoin super attractive.

But since it can get quite volatile in terms of price, when folks feel pretty good about the dollar, they might ditch some of their Bitcoin for less volatile stuff. That can make the price of Bitcoin take a dip. The Bitcoin-dollar relationship is like a complicated dance that keeps changing its moves.

[Tytanowy Janusz]

My question is this, why does the value of BTC decrease when the value of the dollar rises?

You are confusing causation with correlation.

1- Bitcoin often trades in the opposite way to DXY (not to the dollar, because value of the dollar goes down every day, it never goes up). You can buy 50% less stuff than 20 years ago. Thats the dolar purchasing power chart:


2- DXY pumps when there is a panic in the market (no matter what it is caused by) and this causes investors to migrate from riskier assets to safer ones. therefore, they migrate from exotic fiat currencies to the dollar, sell shares on foreign markets, sell bitcoin. Thats the migration from risky assets to save assets not the migration from old money to new money.

[Upgrade00]

These two organizations stand for opposing ideals—

Bitcoin is not an organization but us a network.

The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change.

There is no conflict between both. The USD has been around for multiple decades now, Bitcoin is new and serves as an alternative currency moslty used as a hedge fund and for investments.

My question is this, why does the value of BTC decrease when the value of the dollar rises?

Bitcoin is priced againts the US dollar so if it gets stronger that increases he purchasing power, meaning you can buy more bitcoins with it.
Same thing happens in your local markets. When inflation grows, prices of commodities increases and when it reduces so does the prices of commodities.
The changes in reference to Bitcoin price is not significant.

[retreat]

-snip-
My question is this, why does the value of BTC decrease when the value of the dollar rises?

The value of Bitcoin will only decrease if market demand decreases or the number of sales is higher than purchases, whether due to economic factors or other things. It's the same as Bitcoin, in fact if the market demand for USD decreases, the USD value will also decrease accordingly and if market demand increases the value will also increase, even though it's actually more complex, we can simplify it like that.
But if so, why has Bitcoin's value increased so significantly compared to USD in recent years? because people understand that the potential of Bitcoin can revolutionize global financial markets in the future and buying Bitcoin early can provide high profit potential in the future, so even though many people say negative speculation or things about Bitcoin, there are still many people who hold it because of its potential.

[awik p]

the dollar is not only affected by bitcoin transactions, even without bitcoin the dollar has its own legs, as an international standard currency, it is different with bitcoin at this time, when the dollar rises, then when bitcoin transactions form a consolidation area then the price of bitcoin automatically decreases, but what we know that bitcoin price formation is purely from the value of buying and selling, therefore I don't think there is a significant influence between the two

[OcTradism]

Bitcoin vs US dollar correlation.

The correlation is sinusoidal with time and it isn't always negative or positive so statement about its correlation today will not be correct in future when it changes from negative to positive and vice versa.

I stopped watching too many indicators and correlations when I realized that Bitcoin value is not correlated with US dollar, gold, SP500 etc. Its value comes from its blockchain, protocol and decentralization, no censorship, very strong network against 51% attacks and more.

[Nwada001]

the dollar is not only affected by bitcoin transactions, even without bitcoin the dollar has its own legs, as an international standard currency, it is different with bitcoin at this time, when the dollar rises, then when bitcoin transactions form a consolidation area then the price of bitcoin automatically decreases, but what we know that bitcoin price formation is purely from the value of buying and selling, therefore I don't think there is a significant influence between the two

I don't think the dollar is ever affected by bitcoin transactions, as Bitcoin has nothing to do with dollar value control. Bitcoin is a traded currency, and its price is mostly calculated by the dollar. But the price ups and downs of Bitcoin do not define how the dollar can be valued. I guess the dollar's value is most often determined by how high inflation hits it or how well they can resist it, and a strong economy also contributes to its value. While Bitcoin's value and price largely depend on demand,

[rat03gopoh]

Both are different entities that have their own quantity demanded and supplied. Granted, a few percent of traders are in this pair, but it should be noted that volatility in the value of the dollar can be regulated by government policy intervention.
The last few days, dollar to my fiat exchange rate has increased, but that hasn't been able to change the bitcoin trend to bearish.

[hatshepsut93]

The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape.

Dollar has been dominating the global economy since WW2. Bitcoin these days is insignificant compared to USD - it has a tiny fraction of its marketcap and even a tinier fraction of transactions.

These two organizations stand for opposing ideals—one rooted in conventional financial institutions, the other a forerunner of the digital age.

Financial institutions are not tied to USD. They could operate with Bitcoin if there was demand. Crypto exchanges are financial institutions too. And Bitcoin is not a digital revolution. US dollar has been digital for quite a while.

The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change. My question is this, why does the value of BTC decrease when the value of the dollar rises?

Bitcoin value goes up or down in a chaotic manner, so it could be a coincidence. But there's a strong narrative that Bitcoin is a hedge against inflation, so if dollar is strengthening, there's no need in this function.

[aylabadia05]

My question is this, why does the value of BTC decrease when the value of the dollar rises?

The trigger for an increase in the dollar can be caused by several factors because in the world of international trade, the dollar is the official currency recognized by the state. While bitcoin depends on the amount of demand and supply. So the impact occurs because globally Bitcoin is traded in dollars.
If we examine further, the value of bitcoin is better even though the frame that is created makes people ignore when the dollar decreases so they are easily fooled.

[Luzin]

Bitcoin value goes up or down in a chaotic manner, so it could be a coincidence. But there's a strong narrative that Bitcoin is a hedge against inflation, so if dollar is strengthening, there's no need in this function.

So far there was not a considerable influence on the condition of money, but economic conditions had the impact we see today. The rise and fall in the value of money does not have a big effect. But rising interest rates and world economic policies always have a big effect, we can see the FED. They ruined some Bitcoin moments. Besides, as long as users believe in the value of Bitcoin, I think Bitcoin will always be valuable.

[Jawhead999]

You're a shallow thinker, there's no correlation between the rise of Bitcoin price will make Dollar price declining and vice versa. It was been expected, Bitcoin price will increase in the long run while Dollar value will decrease due to inflation.

If you think digital innovation is the main difference of traditional money, you need to touch the grass because mobile banking and digital fiat have been around before Bitcoin exist.

[Bitcoin Smith]

The only relation is BTC value is quoted in USD value for example when we trade on exchange that is the only relation between USD and Bitcoin. In case if USD falls down to zero over night which may affect the price of BTC a bit or huge in short term due to the Market sentiment but BTC will start to rise again irrespective of USD's state.

[Dave1]

My question is this, why does the value of BTC decrease when the value of the dollar rises?

I don't know where you got this idea, as others have said there is no relation to the price of BTC to dollar.

BTC is just given a dollar value though as we have to "exchange" this digital currency to fiat. But if you can stay full BTC and in the future people are going to treat it as sound money then we could have other options, and the exchange could be even in your own local fiat=BTC.

[hd49728]

The trigger for an increase in the dollar can be caused by several factors because in the world of international trade, the dollar is the official currency recognized by the state. While bitcoin depends on the amount of demand and supply. So the impact occurs because globally Bitcoin is traded in dollars.
If we examine further, the value of bitcoin is better even though the frame that is created makes people ignore when the dollar decreases so they are easily fooled.

Puchasing power of US. dollar over time

The article clearly presents fact and comparisons as well as insights about purchasing power of US dollar. The trend is downward that means we have to spend more $ to buy a same thing over time.

In contrast, if it is Bitcoin, since 2009, with 1 bitcoin we will be able to buy more things because both value, price and purchasing power of US dollar increase a lot. In addition, the adoption for Bitcoin has been bigger so we can use bitcoin to buy many things directly.

[Nrcewker]

My question is this, why does the value of BTC decrease?

Does the price only goes down? Dude you need to understand that USD and Bitcoins are completely different entities and have different perspective. USD are particularly currency and it’s price goes up and down due to the country’s economy. Whereas Bitcoins are treated as an asset by majority of the people and it isn’t governed by any ruling body. Hence comparing both of them is basically useless. Digital innovation surely has an upper hand if you ask me over traditional money.

[hugeblack]

The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape.My question is this, why does the value of BTC decrease when the value of the dollar rises?

Your words are contradictory, as the first statement contradicts the last. If Bitcoin are two separate forces, how are they interconnected? Also, Bitcoin is still in its early days and we have a market capacity less than Windows Apple, silver, such a market and this size of investment will not change the economic equation while we are talking about the US economy with an annual spending rate of more than a trillion dollars and a public debt of about 32 trillion dollars.
Bitcoin is currently far from affecting the global economy, but if it reaches me 10 trillion and 20 trillion, then it will not be affected by the value of the dollar, but will affect it.

[348Judah]

The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape. These two organizations stand for opposing ideals—one rooted in conventional financial institutions, the other a forerunner of the digital age. The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change.

How dollar depreciate over a period of time


https://twitter.com/BitcoinMagazine/status/1691536550864035841?t=xIDn_5cH7mgUtB3aqSDWzg&s=19

We can see their relationship from above illustration how fiat will always reduce in value over time, bitcoin will never do that, instead it increases with time when we hold, knowing this is one of the vital reasons why so many people have developed a common interest in bitcoin because they want to have a secured future in their financial economy with bitcoin which will not be affected by inflation and economy losses as we have in fiat system.

My question is this, why does the value of BTC decrease when the value of the dollar rises?

Bitcoin does not decreases in value, fiat does, bitcoin is only volatile and rises and fall in which over every time it go dip there's always an open means to rise back, but fiat loose value with time

[Ucy]

The Bitcoin system is quite different from dollars' hence cannot be said to be interconnected. It's like saying the human & robot brains are interconnected. Both are fundamentally/systematically different and incompatible. It can only become interconnected if you could make them compatible by creating a decentralized dollar that utilizes the Bitcoin blockchain/system or by creating fake Bitcoin that's like the dollar.  Besides, Bitcoin is way superior to the dollar. Both should never be allow to mingle together unless the dollar is ready to change for good. Bitcoin  becoming like the dollar is not an option for me. It will remain decentralized and superior to the dollar, and no one can hijack it.

In regards to why the price tend to be inversely proportional to the other, it's simply the principle of demand & supply. Once one has higher demand than the other, its price may be allowed to increase.

[Agbe]

Op Bitcoin and Dollar are not organization but Currencies please use the correct words. This discussion will not be different from others which we have discussed before. Okay let me put it in this way. Bitcoin is the Messiah that came to save mankind from the financial bondage and bitcoin did not come to destroy the fiat dollar who has been assigned to use all goods and services in the world. Bitcoin came to support the Fiat Currency to do well. Bitcoin can't be use physical and it is use only digitally so if you want to use fiat and you have BTC, you must convert it or sell it with p2p so as you said, BTC and dollar (any other fiat currencies) are moving simultaneously.

[m2017]

Between Bitcoin and USD, their correlation operates inversely. In simpler terms, when investors flock to a strengthening asset, let's say the asset gaining strength is USD, the interest in alternative assets like Bitcoin tends to decrease. This triggers selling pressure that significantly impacts prices. Naturally, investors have to decide which asset is more stable, meaning the one that's gaining strength at that time.

However, in certain instances of Bitcoin's price movement, things don't always unfold as anticipated. For instance, during a global economic crisis, people seek out a Safe Haven Asset. As of now, I would place gold at the top tier of Safe Haven Assets. Consequently, both USD and BTC might experience panicked selling.

I think that it is not entirely correct to compare dollar and bitcoin, because it have a lot of serious differences. For example, the well-known limited and endless emissions. Also, although bitcoin was conceived as a means of exchange (electronic money), at the current moment (most likely in the future it will be the same) it is a means of accumulation (wealth, value), while the dollar is a means of exchange (traditional money) .

There is a trend when investors, under market pressure, change their behavior strategy from investing in btc and usd, but most often, none of them plans to keep their investments in dollars for a long time, because this devalues their wealth due to inflation. That is, the dollar is a safe haven during a market storm, after which investors still rush to the means of accumulation (btc, gold, etc.).

Investors don't necessarily choose the asset that is gaining more power. It may be enough for them that the asset weakens less compared to other assets in order to avoid losses.

Gold has traditionally been considered a safe-haven asset, but now there are alternatives in the form of digital gold. Trends change and investors may switch to new forms of assets.

[aylabadia05]

The trigger for an increase in the dollar can be caused by several factors because in the world of international trade, the dollar is the official currency recognized by the state. While bitcoin depends on the amount of demand and supply. So the impact occurs because globally Bitcoin is traded in dollars.
If we examine further, the value of bitcoin is better even though the frame that is created makes people ignore when the dollar decreases so they are easily fooled.

Puchasing power of US. dollar over time

The article clearly presents fact and comparisons as well as insights about purchasing power of US dollar. The trend is downward that means we have to spend more $ to buy a same thing over time.

In contrast, if it is Bitcoin, since 2009, with 1 bitcoin we will be able to buy more things because both value, price and purchasing power of US dollar increase a lot. In addition, the adoption for Bitcoin has been bigger so we can use bitcoin to buy many things directly.

There, the table gives a comparison that $14.71 was enough to buy 20 bottles of Coca-cola in 1944 and in 2020, $1 only got 1 McDonald's coffee.
From the explanation listed in the table in the article that you shared, it is clear how the dollar compares to the value of bitcoin. It means that in 2020, the purchasing power of 1 BTC can get thousands of McDonald's coffee if I am not wrong in mathematics.

It's no wonder that the frame created makes people easily fooled by interesting facts between the dollar and bitcoin.

[Fivestar4everMVP]

My question is this, why does the value of BTC decrease when the value of the dollar rises?

I dont live in the United States, so i possibly might be wrong, so just correct me if at all, i am wrong.

My opinion is this, Dollar has not been rising, for all i know, no fiat currency has been rising, fiat has one major challenge and that challenge is inflation, the ability of the government to print fiat money at will makes fiat look like they are designed to loss value over time, in fact, not that it looks like, fiat are actually designed to lose value over time, so i honestly do not see how dollar is rising when its purchasing power is getting lower and lower.

Bitcoin on the other hand is not stable currency, the volatility in the price of bitcoin makes it a normal thing for the currency to go down in price when demand is less, and go up in price when demand is high, and also, the limited supply of bitcoin also supports this, so overtime, Bitcoin is designed to keep growing both in price and purchasing power, but like ive said before, it a norm for price to go down when demand is low, and price go high when demand is high, this is also how money is made from bitcoin trading.

[SquirrelJulietGarden]

My opinion is this, Dollar has not been rising, for all i know, no fiat currency has been rising, fiat has one major challenge and that challenge is inflation, the ability of the government to print fiat money at will makes fiat look like they are designed to loss value over time, in fact, not that it looks like, fiat are actually designed to lose value over time, so i honestly do not see how dollar is rising when its purchasing power is getting lower and lower.

Central banks print more money so their fiat currencies have increasing inflation with time. As consequence of inflation, no doubt that purchasing powers for their fiat currencies decrease with time. Inflation and purchasing power have inverse correlations.

Bitcoin on the other hand is not stable currency, the volatility in the price of bitcoin makes it a normal thing for the currency to go down in price when demand is less, and go up in price when demand is high, and also, the limited supply of bitcoin also supports this, so overtime, Bitcoin is designed to keep growing both in price and purchasing power, but like ive said before, it a norm for price to go down when demand is low, and price go high when demand is high, this is also how money is made from bitcoin trading.

Bitcoin is inflationary too but because its total supply was set in 2009 by Satoshi Nakamoto, people have clear information about Bitcoin total supply which can not be changed. With time, they know one  more thing, more bitcoins will be lost by lack of carefulness from people who don't backup their wallets, seeds, private keys well enough.

How is the 21 million Bitcoin Cap defined and enforced?

[Blitzboy]

Okay, genius, let me quickly explain it to you because this seems to be a problem for you. Bitcoin, the digital disruptor, and the US Dollar, the embodiment of fiat money, frequently but not always have an antagonistic relationship. The world has a high level of faith in the traditional banking system and, by extension, fiat currency when the USD is strengthening. Why? Considering it to be the safest bet, everyone is turning back to the good ol' dollar.

When that occurs, overseas investors can see dollar-priced assets like Bitcoin as being more expensive. They leave, which decreases demand and consequently lowers the price of BTC. Got it? And to be honest, anyone with even a basic understanding of how financial markets operate would realise this. Then again, it's better late than never, right?

[kryptqnick]

The USD is not interconnected with Bitcoin. Others pointed out that there's no strong correlation between the two, and that they are incomparable by the scope of usage and influence. I see various explanations in the thread, but honestly, I think that the op might just be confused when asking about the decrease of BTC value when the USD value rises. We measure the value of Bitcoin in the USD for convenience, it doesn't mean that they're literally connected with one another. And the value of dollar doesn't really rise. That would be deflation, and the USD is slightly losing value most of the time, just as fiat is meant to do (inflation).

[hugeblack]

The value of Bitcoin is subject to supply and demand factors, and these factors change every second with an increase in demand or supply, and when an imbalance occurs, the price changes, so you find that the price of Bitcoin changes every second and sometimes it is fixed, while the dollar is the global reserve currency, and the Federal Reserve guarantees its value, so it is tied With the value of the dollar and with promises that the United States will protect its currency, therefore, a more stable price.

The difference between the more stable price and the more volatile bitcoin price is what makes bitcoin sometimes fall against the dollar and sometimes rise.

[348Judah]

In regards to why the price tend to be inversely proportional to the other, it's simply the principle of demand & supply. Once one has higher demand than the other, its price may be allowed to increase.

Many could have wondered as well that why has it been in this way whereby we see the value of dollar depreciating over time whereas bitcoin is increasing, this alone should significantly tells us that there are factors that are running underground which could not allow the USD value to increase over time than to decrease, inflation in many ways have affected the relevance of fiat and reduced it value with because there are policies not working right with fiat monetary system which doesn't exist in a decentralized network with bitcoin.

[taufik123]

-snip-
The difference between the more stable price and the more volatile bitcoin price is what makes bitcoin sometimes fall against the dollar and sometimes rise.

It is because of Bitcoin's volatile characteristics that the price moves significantly against the dollar every second.
Bitcoin is also a relatively new digital asset and looks small when compared to traditional currencies that have existed since the era of world economic growth.

Many market sentiments will affect the price of Bitcoin and Bitcoin is also traded 24/7 and has never stopped until now.
Whereas traditional currency stock trading during the weekend is closed and completely stopped.

The ups and downs of Bitcoin prices are common and can provide quick profits and vice versa.
Bitcoin is decentralized, not regulated by anyone so unilateral regulations will not be able to affect it.

[lionheart78]

My question is this, why does the value of BTC decrease when the value of the dollar rises?

As the earlier reply stated, they are not 1 - 1 in proportion.  The moment the value of the dollar rises, the purchasing power of the dollar increases.  Unless there is enough demand for the Bitcoin market to uptrend, in a normal calculation, the amount of BTC being able to purchase will become higher thus it makes Bitcoin looks like losing its USD value.  The opposite reaction will happen when the value of USD becomes lower.

In other word considering the other factor is the same, USD is inversely proportional to BTC in terms value.

[yhiaali3]

Although the US dollar (USD) and Bitcoin (BTC) are opposite in all characteristics where the dollar is centralized and bitcoin is decentralized and bitcoin maintains privacy while the dollar does not, they are actually two separate and interdependent forces despite being opposite.

Determining the price of bitcoin is directly related to the dollar, so it is natural to see a decline in the value of bitcoin when the strength of the dollar rises, as they are opposite, while if there are factors affecting the price of the dollar negatively, this will reflect positively on the price of bitcoin, although this rise could be imaginary due to inflation. And the dollar lost some of its purchasing power.

This mechanism can be understood through the example of gold because gold and the dollar are also interrelated but opposite, for example when the value of gold rises, this rise is in fact a result of inflation and the dollar losing some of its value and purchasing power while the real value of gold is fixed.

[mendace]

The value of Bitcoin (BTC) can be affected by a variety of factors, including supply and demand, adoption, market news, and global economic conditions.  When the value of the US dollar (USD) goes up, it could impact the price of Bitcoin in a number of ways.

[usekevin]

Op Bitcoin and Dollar are not organization but Currencies please use the correct words. This discussion will not be different from others which we have discussed before. Okay let me put it in this way. Bitcoin is the Messiah that came to save mankind from the financial bondage and bitcoin did not come to destroy the fiat dollar who has been assigned to use all goods and services in the world. Bitcoin came to support the Fiat Currency to do well. Bitcoin can't be use physical and it is use only digitally so if you want to use fiat and you have BTC, you must convert it or sell it with p2p so as you said, BTC and dollar (any other fiat currencies) are moving simultaneously.

The bitcoin and USDT are now most traded cryptocurrency,the people buy USDT for holding the crypto to buy some good coin using the steady price USDT.The bitcoin was long term coin now,the good time to buy bitcoin is the bear market.Now we are facing the bear market,So you can buy some bitcoin for now.If you want to buy USDT for your local people,it's better to buy the USDT in P2B.Some people will get scam by sending FIAT to his fellow country people without getting any dollars.Don't believe any one in the online blindly.

[Ale88]

The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape. These two organizations stand for opposing ideals—one rooted in conventional financial institutions, the other a forerunner of the digital age. The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change. My question is this, why does the value of BTC decrease when the value of the dollar rises?

Bitcoin is way more than its counter value in US dollars because there is no inflation, there is no central bank printing more, there is no bank freezing your funds, and you are completely free to send funds to whoever you want whenever you want, without any need of documentation and permits. If you are into bitcoin of course you are because its value will increase but that shouldn't be the only reason.

[fullhdpixel]

In regards to why the price tend to be inversely proportional to the other, it's simply the principle of demand & supply. Once one has higher demand than the other, its price may be allowed to increase.

Many could have wondered as well that why has it been in this way whereby we see the value of dollar depreciating over time whereas bitcoin is increasing, this alone should significantly tells us that there are factors that are running underground which could not allow the USD value to increase over time than to decrease, inflation in many ways have affected the relevance of fiat and reduced it value with because there are policies not working right with fiat monetary system which doesn't exist in a decentralized network with bitcoin.

Those who wonder are lacking of knowledge on how financial system works. Money won't move just like that without a reason. Dollar depreciates due to inflation while Bitcoin can be a good counter to it due to its limited supply. We only need to be honest and say that Bitcoin doesn't increase at all times. Inflations are normal and it doesn't happen because there are anomalies happening around.

Despite of an inflation, most people still use fiats because this is where they used to, and there are still times where we can experience a relief in which inflation rates can decline. People can also do something to help them survive a high inflation period.

[Sinzu_]

They are not 1 - to - 1 correlated.

Nobody really pays attention when the dollar goes down during inflation, because everything is denominated in dollars. Therefore, when you see BTC price go up, that can mean either two things - the market demand of Bitcoin is increasing, or the US dollar is losing value because of inflation while Bitcoin stays at the same demand.

Same is true in reverse - when BTC value goes down, it doesn't necessarily mean that dollar is also going up, perhaps the dollar is remaining at the same value while BTC's own demand diminishes.

Hmm this is truly helpful.... When do you feel is the best time to buy?

[dlightag]

Bitcoin and USA dollar are two currency together, because Bitcoin is a digital currency that is only trading online or online purchasing of good's and services as the case maybe, but US dollar are seeing as a traditional money that we make use of it every day by day to buy or sell anything including online and offline transaction respectively, therefore come to talk about Bitcoin price increase and dollar price decrease during Bitcoin price pump, is a simple something all together, which is work of demand and supply in the market, when supply is high and demand will be less that affect the price of Bitcoin or dollar depreciate in price value.

[Fivestar4everMVP]

Bitcoin and USA dollar are two currency together, because Bitcoin is a digital currency that is only trading online or online purchasing of good's and services as the case maybe, but US dollar are seeing as a traditional money that we make use of it every day by day to buy or sell anything including online and offline transaction respectively, therefore come to talk about Bitcoin price increase and dollar price decrease during Bitcoin price pump, is a simple something all together, which is work of demand and supply in the market, when supply is high and demand will be less that affect the price of Bitcoin or dollar depreciate in price value.

Talking about the dollar specifically now, dollar depreciation is not entirely as a result of demand and supply, and this is not peculiar to the us dollar alone but to every fiat currency out there.
For bitcoin, we could say that the driving force for its ups and downs in price is as a result of demand for it, and not supply because we all know fully well that bitcoin is very limited in supply unlike fiat, that is, bitcoin supply is already fixed, so demand alone is what drive the price of bitcoin up or down, when demand is high, price goes up, and when demand is low, price goes down.

For fiat, several factors drive the price up or down in the market and in the short term, but In the long terms, fiat currencies are always losing value due to their unlimited supply nature, and for the fact that central banks even have the ability or monopoly to go on printing more fiat when governments need money, not minding the consequences of this..

So for me, bitcoin will always be a better money than fiat, though I still want both to co-exist together.

[Cryptomultiplier]

The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape. These two organizations stand for opposing ideals—one rooted in conventional financial institutions, the other a forerunner of the digital age. The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change. My question is this, why does the value of BTC decrease when the value of the dollar rises?

Firstly, I do not think there's a conflict between the dollar and BTC. Both are distinct in usage and application.
Many countries have their legal tender backed by the USD reserve banks and as long as USD is one major currency for trade and commerce round the world, we would keep seeing the demand for the USD rising. Unless, more countries like the BRICS countries adopt the Yen as speculated, then the price of USD will keep rising still.

Am sure you are also aware that 1 BTC is equivalent to  almost $26, 203 USD currently, and without much disparity, this price will always fluctuate depending on market volatilities at the time.
The value of BTC will continue to decrease if more of the users/customers don't demand it. If more customers do demand it for investment or trade, we would see the value of BTC increase. Simple.

[Mauser]

The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape. These two organizations stand for opposing ideals—one rooted in conventional financial institutions, the other a forerunner of the digital age. The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change. My question is this, why does the value of BTC decrease when the value of the dollar rises?

The short answer is that because these two currencies are being traded against each other they tend to move in opposite directions. Many crypto investors who hold Bitcoins and want to take profits from their portfolio will switch back to Fiat money. We can see that alt coin investors tend to move into Bitcoins and Bitcoin investors move back to USD or Euro. For them to take profits, they sell their Bitcoins and want to have USD, so there is selling pressure on BTC and more demand for USD. The exact opposite happens when people want to buy Bitcoin and do this from their Fiat saving account. This is of course only a small effect, because the US Dollar is such a huge market with all the major countries in their world trading with it. There are a lot of more factors that go into the rise and fall of the Dollar. The long term trend for Bitcoin is upwards, we are going to see more price increases in the future. While on the other side the US government doesn't want a strong Dollar. A strong Dollar would make their exports more expensive and with their large spending and printing programs of the FED the value of the US Dollar should decrease over time.

[WatChe]

Firstly, I do not think there's a conflict between the dollar and BTC. Both are distinct in usage and application.
Many countries have their legal tender backed by the USD reserve banks and as long as USD is one major currency for trade and commerce round the world, we would keep seeing the demand for the USD rising. Unless, more countries like the BRICS countries adopt the Yen as speculated, then the price of USD will keep rising still.

Am sure you are also aware that 1 BTC is equivalent to  almost $26, 203 USD currently, and without much disparity, this price will always fluctuate depending on market volatilities at the time.
The value of BTC will continue to decrease if more of the users/customers don't demand it. If more customers do demand it for investment or trade, we would see the value of BTC increase. Simple.

We saw two massive bull runs of Bitcoin in 2017 and 2021 when Bitcoin touched its ATH of 19k and 68k respectively. In both these bull runs there is no connection with price of USD. One thing we need to understand is that USD along with other fiat are backed by governments and will continue to exists for real world monetary system. While Bitcoin is a decentralised monetary system that is backed by its community and is never created to replace USD.

[Blitzboy]

The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape. These two organizations stand for opposing ideals—one rooted in conventional financial institutions, the other a forerunner of the digital age. The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change. My question is this, why does the value of BTC decrease when the value of the dollar rises?

The short answer is that because these two currencies are being traded against each other they tend to move in opposite directions. Many crypto investors who hold Bitcoins and want to take profits from their portfolio will switch back to Fiat money. We can see that alt coin investors tend to move into Bitcoins and Bitcoin investors move back to USD or Euro. For them to take profits, they sell their Bitcoins and want to have USD, so there is selling pressure on BTC and more demand for USD. The exact opposite happens when people want to buy Bitcoin and do this from their Fiat saving account. This is of course only a small effect, because the US Dollar is such a huge market with all the major countries in their world trading with it. There are a lot of more factors that go into the rise and fall of the Dollar. The long term trend for Bitcoin is upwards, we are going to see more price increases in the future. While on the other side the US government doesn't want a strong Dollar. A strong Dollar would make their exports more expensive and with their large spending and printing programs of the FED the value of the US Dollar should decrease over time.

Isn't it interesting how humans, who are always trying to get control, use monies to dance around power? Your point about BTC and the USD is just a small part of a much bigger game of tug-of-war on a world scale. People trading Bitcoin for fiat money is just a small wave in a huge ocean of lies, power struggles, and desperate attempts to stay on top.

You're right that the long-term direction for BTC is up. This is because Bitcoin is, for once, a way to do business that isn't controlled by the government. It is clean and unspoiled! The dollar? A simple tool used by a dying power. The US doesn't want the dollar to be strong because they know they are going down. Their endless printing of money and financial strategies are just bandages on a gunshot wound. A crash is coming, so wake up and smell it

[lepbagong]

The value of Bitcoin (BTC) can be affected by a variety of factors, including supply and demand, adoption, market news, and global economic conditions.  When the value of the US dollar (USD) goes up, it could impact the price of Bitcoin in a number of ways.

There are still many who really need $ [traditional money] because many transactions are still mastered by rotating $ and can't get rid of this habit because the environment also influences it, even though Bitcoin [digital innovation] has started to be known and has also been used.I agree with you that the existence of Bitcoin is very much influenced by many factors that can affect its movement; the same goes for movements in the value of the dollar.In principle, both of them must acknowledge that they really need each other to be able to be used as a transaction between them and other needs. At this time, it must be admitted that both have the same role, are used equally, and are equally needed, although $ is still the best, although maybe in the future it will be different.

[BVeyron]

The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape. These two organizations stand for opposing ideals—one rooted in conventional financial institutions, the other a forerunner of the digital age. The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change. My question is this, why does the value of BTC decrease when the value of the dollar rises?

I think that it happens due to the fact that at the moment both currency systems are global, so they are rival, BTC is quite hard to use for direct purchases (especially for small everyday purchases) while dollar is highly centralised, strictly controlled by "the few richest" and is vulnerable to inflation. So this rivalry is visible if you take a look at BTC and USD price fluctuations. Also, in case of dollar inflation there is a chance to save money via cryptocurrencies (however, only a chance, not guarantee)...

[justdimin]

The US Dollar (USD) and Bitcoin (BTC) are two separate but interconnected forces that have been reshaping the financial and economic landscape. These two organizations stand for opposing ideals—one rooted in conventional financial institutions, the other a forerunner of the digital age. The conflict between the dollar and Bitcoin has prompted discussions about the future of money, investing, and the role of technology in forming financial institutions as the global economy continues to change. My question is this, why does the value of BTC decrease when the value of the dollar rises?

I think that it happens due to the fact that at the moment both currency systems are global, so they are rival, BTC is quite hard to use for direct purchases (especially for small everyday purchases) while dollar is highly centralised, strictly controlled by "the few richest" and is vulnerable to inflation. So this rivalry is visible if you take a look at BTC and USD price fluctuations. Also, in case of dollar inflation there is a chance to save money via cryptocurrencies (however, only a chance, not guarantee)...

I would say that they both have their places and they could co-exist together. I understand that some people may not like that, but I feel like it can be done and we are going to end up being a lot better on the long term. Think about it this way, if we could end up with something that will make a lot of profit, why wouldn't we do that?

We would be able to use them both at the places they are good at and we should be able to make a profit based on that. This will allow the situation to grow a lot bigger and could be important on the long run as well. I know that life is not that simple, and we could end up with a situation that is a bit more specialized based on what you are going to do, and then use that one.