Bitcoin, gold to be taken advantage of as Peter Schiff predicts “the worst year ever” for the US dollar

Bitcoin (BTC) could gain new support for a record year in 2021 thanks to the disappearance of a familiar enemy: the US dollar.

As various sources noted this week, the dollar is trading at nearly three-year lows against various currencies and five-year lows against the Swiss franc.

Analyst: long-term trend “clearly dollar weakness”

Dollar weakness tends to translate into strength for Bitcoin, and 2020 was the year the US Dollar Currency Index (DXY) became a reliable yardstick for price direction.

An inverse correlation has been palpable throughout 2020, and while Bitcoin’s relationship with DXY has more recently been broken, analysts remained convinced that the new lows were just good news for the cryptocurrency.

A combination of renewed hopes for a global economic recovery and a new coronavirus stimulus package are the latest threats undermining the dollar. DXY hit 91.1 on Tuesday, the lowest since April 2018.

“When you get a report that a bipartisan stimulus deal can be concluded after hopes are dashed, it’s just another reason to raise risk and sell the dollar,” John Doyle, vice president of trade and commerce, told Reuters. Tempus trading.

Bitcoin skeptic Peter Schiff, as always in love with gold, also agreed with hodlers about the fate of the dollar.

“The US dollar is now trading at its lowest level against the Swiss franc since January 2015,” he noted Wednesday.

“This is a harbinger of things to come. The franc is leading the way, but other currencies will soon follow. 2021 could be the worst year ever for the US dollar, at least until 2022 “.

The grayscale provides an accidental buy signal for gold

On the subject of gold, meanwhile, Schiff’s loyalty may soon be rewarded as the precious metal recovers from its current lackluster performance.

Barry Silbert, the founder of cryptocurrency asset management giant Grayscale, confirmed that the company reported its “Bitcoin-not-gold” ads this month, a move signaling that the market believes gold has touched. bottom, an analyst said.