Glassnode Founders Predict Bitcoin Surge as US Dollar Weakens

The co-founders of Glassnode, Jan Happel and Yann Allemann (Negentropic), predict that Bitcoin could soon reach new all-time highs.

They believe this potential surge is tied to the weakening US Dollar Index (DXY), which may occur due to the Federal Reserve’s rate cuts and quantitative easing (QE). The DXY, which measures the dollar’s strength against six major currencies, typically signals that a weaker dollar boosts risk assets like Bitcoin and stocks.

Bitcoin & DXY: A Tight Dance 🪙📈

Bitcoin has closely tracked the DXY for weeks, especially post-US elections, as the dollar hit new yearly highs. But with easing policies in play, what happens when the DXY weakens and decoupling starts?

Signs point to Bitcoin smashing new ATHs… pic.twitter.com/0NEdcOMAuj

— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) November 15, 2024

Bitcoin has closely tracked the DXY in recent weeks, especially after the US elections, but with the Fed’s easing policies, the analysts foresee Bitcoin breaking past its previous highs if the DXY weakens. At the time of writing, Bitcoin is priced at $89,200, down 5% from its peak of $93,500.

On the Ethereum front, despite its decline relative to Bitcoin (ETH/BTC), its market cap has shown strength. Ethereum’s market cap rose from $290 billion to over $400 billion during Bitcoin’s rally, dipping only slightly to $380 billion during the ETH/BTC pullback.

This indicates that Ethereum holders aren’t selling off, and Bitcoin’s dominance is currently outshining other market forces. Bitcoin’s dominance is at 61% as of now.

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Taking a look at Ethereum’s market cap:
👉🏻 after “Super Tuesday,” it rose from $290B to just over $400B. During this ETH/BTC pullback and BTC dominance surge, ETH’s market cap only dipped to $380B.

This suggests no dumping, just Bitcoin’s strength outshining other… pic.twitter.com/uFm3RBPmHI

— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) November 14, 2024