Analysts say the dollar has not yet shown its usual wind shelter intensity in the recent Iran-Israel conflict, while Bitcoin has reached an all-time high of $111,970 in another attempt.
“Today’s U.S. dollar index is getting involved in new cyclical lows,” macroeconomician Lyn Alden explain In a Wednesday post. “In the past few weeks, there have been few bids for flight safety,” Alden added.
“Fiat is fading,” analysts said.
Responding to similar emotions, real visual crypto analyst Jamie Coutts explain That “Fiat is fading.” The dollar index (DXY) measures the strength of the dollar against major currencies around the world, trading at its lowest point since February 2022, at 97.50 at the time of publication according to to TradingView data.
Now, it reached the same level on June 13, when tensions escalated for the first time after Israel launched an air strike in Iran.
In this case, market participants will often expect to switch from riskier assets such as cryptocurrencies such as US dollars or government bonds to a safer option. In October 2024, a large missile strike Locations targeted by Iran The result was a 2.67% peak in the mid-month period.
Traders are highlighting Bitcoin’s recent strength
While the dollar has not surged in recent conflicts, Bitcoin (BTC) experienced fluctuations.
On Sunday, Bitcoin fell below $100,000 for the first time since early May. But, due to the A fragile ceasefire takes effect It has rebounded on Monday, trading at $107,930 at the time of publication according to Used to share market cap data.
Crypto Analyst Matthew Hyland explain Despite recent risk conditions, “the Bulls are all in control”, while others point to Bitcoin’s resilience.
Crypto is today’s emerging market trade
“Bitcoin has broken two 2-week downward trends in the past month,” crypto analyst Rekt Capital explain Wednesday.
Real Vision’s Coutts compares the current macro environment with the early 2000s, when the weak dollar caused capital to turn to emerging markets and commodities.
“If you remember 2002-2008, then the last major dollar depreciation would ignite a fire under EM stocks and commodities,” Kutz said.
Related: Bitcoin Bull Stops $4K BTC Price Slump As Dollars Reach New 3-Year Low
“EM outperforms 3 times DM in Capital’s young economies chasing high growth, which has led to the BRICS,” he said. He added that the new emerging markets are cryptocurrencies:
“Encryption is today’s Em. Capital is moving the energy location,” he said.
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This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.
