The price of BTC is up and running again. It has pulled itself back from the continuous downward trend which had been going on for many days, and now it is back on track with its upward trend. It has touched the mark of $55k, and it is now aiming for new all-time high prices. This, however, is not the end of the story; a very major factor that can have a devastating effect on the value of Bitcoin and the crypto market overall is the reversal of the dollar.
Can the Dollar Effect Bitcoin’s Value?
The predictions of this reversal have been surfacing for a long time now but in vain up till now because the value of the dollar has not bounced back. This time for critical decisions about the dollar and what outcome these decisions have in the next day or two is going to be very critical and could impact the current upward trend of Bitcoin and other digital assets.
Bitcoin Gaining from the Decline in the Value of US Dollar
This past year has been one of the most degrading years in terms of the history of the dollar; a consistent debasement by the United States government caused it to face a massive decline in value. Also, with the approval of further stimulus packages, the total supply of traditional currencies has been continuously swelling and ballooning to reach the level never seen before proportions.
This decline in the value of the dollar made the investors a bit sceptical about the future of the currency, and so, they have shifted their interests over to the stock market, BTC and other crypto assets. The crypto assets have gained such huge popularity in the past few months that cryptocurrencies such as BTC and ETH have even surpassed the stock investments. This huge inflow of investments pushed Bitcoin to higher prices and created higher value for the cryptocurrency, and this trend has barely taken a hit ever since.
Any further change in the trend of Bitcoin is highly dependent on what happens next to the dollar. The dollar could either come back from its downward trend and cause the price of BTC to fall, or it can go down further due to more stimulus packages and send BTC prices to new heights.