Analysis: Strong Currency Will Reduce Bitcoin's Strength
Analysts attributed the recent bitcoin rally to a weaker U.S. dollar after a major bitcoin correction on Black Thursday, Cointelegraph reported. After the rally, the relationship between Bitcoin and gold strengthened to a one-year high at 0.93, analysts on the Kraken exchange wrote. The COVID-19 virus is spreading everywhere, increasing government spending, financial problems and a weak dollar have moved markets to safer areas. Exchange, if the money comes back and starts the competition, the likelihood that Bitcoin will enter the consolidation phase increases. Crypto trader Scott Melker has said that the relationship between Bitcoin and the US currency is more beautiful than its connection to the stock market. Since April, the US dollar has underperformed against major currency reserves such as the Japanese yen, and if the US dollar was able to support a strong recovery, Bitcoin would have a negative impact.
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