Let us check the situation of the dollar and Bitcoin. Michael van de Poppe is a Cointelegraph Markets analyst. On Saturday, he highlighted the gap as the likely outcome of the bearish scenario for Bitcoin. With current levels, it will hold to open the possibility of a push higher.
The story of Trump had little impact on an essential metric for the United States dollar. In recent months, Bitcoin has exhibited a strong inverse correlation.
Essential Bitcoin network fundamentals continue to highlight miner dedications, still looking more robust than ever.
As the week began, both weekly average hash rate and difficulty remained bullish. The difficulty was at a 5.1$ increase at the next readjustment in five days.
Underscoring competition among miners for block rewards, the previous adjustment saw a healthy 11.4% increase. Quant analyst PlanB, at the time, nonetheless, described the move as being ‘like clockwork.’ It came four months after the latest block subsidy of Bitcoin halving. Furthermore, it was in line with behavior after previous halvings.
Bitcoin and Dollar
The average hash rate is an imprecise, nevertheless broadly useful indicator of network support. Thus, the hash rate was trending up back towards all-time highs. It happened after it hit 143 EH/s (exahashes per second) earlier in September.
The U.S. DXY (dollar currency index) stayed steady. It was because the tax story hit, having spent a week climbing higher.
The United States dollar index pits USD against a basket of trading partner currencies. So, it has improved its position considerably since mid-September. Thus, that strongly contributed to downward pressure on BTC/USD, as Cointelegraph reported. Nevertheless,
Over the past week, Bitcoin has held up better than expected. Thus, it suggested that the relationship to the index can be easing.
Statistician Willy Woo, last week, predicted that Bitcoin would soon leave its ties to traditional markets behind.
However, in the meantime, any decisive move in the dollar index can still impact the price trajectory of Bitcoin in the short term.
