Researchers at the cryptocurrency exchange Binance say the strength of the US dollar will determine where the Bitcoin and cryptocurrency markets will go next. A new trading report highlights the recent negative correlation between the dollar and alternative assets such as crypto and gold.
Researchers say the decline in the cryptocurrency markets last month was affected by the pullbacks in global stock markets following the coronavirus epidemic that caused widespread economic uncertainty. The report uses the following statements: “The US dollar has been the main driver of Bitcoin’s success this year. However, the recent surge in the dollar has dropped cryptocurrencies. Any indicator of weakness or the continued relentless sale of the dollar will trigger the next wave of buying in alternative assets like Bitcoin. ”
Interest in Bitcoin has dropped
Open interest in Bitcoin fell from $ 1.1 billion to $ 650 million in September, according to data from Binance Future. Since then, the open interest rate has recovered to $ 960 million.
Despite the recent market decline, investors made significant gains and did not retreat due to the short-term fluctuation in the bitcoin price, and BTC’s fundamentals remained strong, according to researchers:
“As they say, no bull market will rise in a straight line. While frustrating, market corrections are regularly made in bull markets. Market corrections can be sound, adjust overvalued prices, and provide buying opportunities. Many analysts are optimistic about cryptocurrencies in the medium and long term. Investors should closely monitor macroeconomic trends for indicators of Bitcoin’s future direction. “