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There were times when business was conducted purely in gold; anything below it was not even considered for trade. Countries and states went by gold as a standard of wealth and hedge against inflation for centuries until a modern framework was developed in the form of currency notes and copper coins to prevent the unjust circulation of gold and preserve it. US dollar is considered at the top of its game among other currencies from around the world; it is used as a standard to measure the performance of other currencies and their dominance over the market.

Justin Bennett, who is a crypto analyst and trader, has been objectively checking out the performance of the U.S. dollar for some time now in comparison with the crypto market. Recently dollar is not doing so great, which is why the price is kind of dwindling and not steady. Justin says that if the U.S. dollar was to tank as he is seeing the metrics right now on the US dollar index, which compares the US dollar to many other Fiat currencies, then it would mean a strong bullish run for the crypto market and especially Bitcoin.

Bullish Position of Bitcoin

If the dollar is weaker, then this trend generally demonstrates that investors and traders are favoring other currencies or digital assets as a reserve and hedge against inflation. Bennett says that the U.S. dollar index or DXY is about to approach at the very bottom of an ascending channel, as suggested by the on-chain data. Many would presume that the U.S. dollar tanking the way it is presumably going to right now couldn’t be good for Bitcoin now, could it?

Well, this is the way markets react to each other as the U.S. dollar is tanking right now; it means that Bitcoin might reach below $60K and settle for a generous resistance, say $57K. Then in early December, when things are more brisk and breezy, Bitcoin might be able to go about $75K, and it might only be halfway through the month.