Hi HODLers and Hiveans,
Something that used to hold true at least for the past years was that when the US Dollar was weakening, Cryptocurrencies and mostly $BTC would go up.
The easy way to think about it was that now a $BTC would be worth more $.
It seems that this wasn't true during the past few days.
Bitcoin Price
Don't get me wrong, Bitcoin is still sitting at very healthy levels but I have been surprised by the recent price action.
CPI numbers were quite good and could have reassured the market. Instead, it looks like the current dip in the USD strength was due to traders expecting future FED Rate Cuts. That is the only explanation I can think of.
Which seems like a Buy the news. Every other Economic zone has communicated that they would most likely stop cutting rates or are at the end of their easing cycle (EU, Canada, etc...)
DXY Index (Dollar Strength)
Any opinions on this new inverse relation between USD Price and BTC Price?
I'll follow the development of this relation and hopefully will find a better explanation.