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The Bitcoin and US dollar affair

Brazil’s President calls for end to US Dollar dominance in foreign trade, backs BRICS currency

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TL;DR

  • Expert explains the inverse correlation between Bitcoin and US Dollar.
  • The two currencies represent two different realms in financial industry.
  • Bitcoin trading independent of US dollar, which is influenced by political issues in the US.

The Bitcoin and US dollar affair is something that happens to be a fore front issue within the financial market. When it comes to Bitcoin trading volumes by pair the Bitcoin and US Dollar pair sure carries the industry by trade volume followed by Japanese Yen and Euro. However, the two currencies are supposedly inversely related to each other.

Bitcoin and US Dollar price correlation

Expert analysis firm X Force Global explains that the two currencies are definitely in an inversely proportional affair that continues to effect the market since the widening gap can cause difference in value and profits.

Bitcoin and US Dollar correlation chart by X Force Global

The analyst explains that the correlation must be monitored closely since most of the global economy is based on the US dollar prices so in turn, the strength and weaknesses of the currency affect the cryptocurrency market as well. US dollar value benchmarks pretty much everything from commodities to assets and cryptocurrencies. But there are of course regions where Bitcoin is a preferred medium to avoid the US Dollar dependency and inflation such as Argentina.

Although Bitcoin has managed to become the 6th largest currency by circulation the total trade volume and not just that of Bitcoin the cryptocurrency industry as a whole cannot compete with the global trade and financial activities in different fiat currencies and US dollar. At present, the cryptocurrency industry lacks the necessary financial inclusion to compete on that front.

Yet, on the other hand, the inverse relationship between the Bitcoin and US dollar is quite evident, however that was not the case until 2017. The analyst explains that at the time of writing, USD is likely to go down given the uncertainty in the up coming US presidential election and traders are likely to look towards Bitcoin or Gold as hedge funds.

The shift would in turn increase Bitcoin buying to a great extent and while the US dollar prices would be going down, Bitcoin prices would continue to rise.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Saad B. Murtaza

Journalist, Writer, Editor, Researcher, and Strategist with over 10 years of experience in the digital, print and public relations industries, Saad has been working with the mantra, Creativity, Quality and Punctuality. In his waning years promises to build a self-sustaining institute that provides free education. Carrying a diverse portfolio he has studied and written on topics related to cyber crimes, scams, blockchain, and cryptocurrencies.

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