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
Citigroup analysts say the key to Bitcoin’s future isn’t mining cycles or halving math—it’s ETF inflows.
Bitcoin may be entering a typical summer correction phase, according to a July 25 report by crypto financial services firm Matrixport.
Bitcoin has dropped sharply to test its local range low near $115,000, with analysts pointing to renewed whale activity and long-dormant supply movements as key contributors to the decline.
Bitcoin has reached a critical milestone in its programmed supply timeline—only 5.25% of the total BTC that will ever exist remains to be mined.