Summary
- It said an analysis found that U.S. dollar weakness is not providing much help to the price of Bitcoin (BTC) for now.
- GugaOnChain said that for dollar weakness to become a driver of Bitcoin’s rise, a favorable macro environment such as high inflation and ample liquidity is needed.
- He added that in markets where fear and risk aversion are strong, investors prefer traditional stores of value such as gold, and crypto assets often fall alongside equities.
An analysis has suggested that the weakening U.S. dollar is not providing much support to Bitcoin (BTC) prices for now.
According to crypto asset (cryptocurrency) media outlet CryptoPotato on the 26th (local time), CryptoQuant contributor and on-chain analyst “GugaOnChain” said, “For dollar weakness to act as a catalyst for Bitcoin to rise, it needs to be accompanied by a favorable macro backdrop such as high inflation and ample liquidity.”
He explained, “In markets like the current one, where fear is elevated and risk aversion is pronounced, investors tend to prefer traditional stores of value such as gold over Bitcoin.”
He added, “If the dollar’s depreciation occurs amid a confidence crisis or an extreme risk-off phase, crypto assets are often more likely to fall in tandem with equities than to be perceived as safe-haven assets.”
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
