Analysts claim that the US dollar has not shown its usual safe force during the recent Iran-Israeli conflict, while Bitcoin increases in another attempt to reach its $ 111,970.
“The dollar index stands out at the bottom of new cycles today,” said Lyn Alden macroeconomics on Wednesday. “Barely the security flight offer in the past two weeks,” added Alden.
“Fiat is discolored,” explains the analyst
Echoing a similar feeling, Real Vision Crypto Jamie Coutts said that “Fiat fades”. The US Dollar index (DXY), which measures the USD strength against the world’s main currencies, has been negotiated at its lowest point since February 2022, located at 97.50 at the time of publication, according to tradingView data.
It is now close to the same level that it reached on June 13, when tensions degenerated for the first time after Israel launched air strikes on Iran.
In situations like this, market players generally expect a more risky assets like cryptocurrencies in safer options such as the US dollar or government obligations. In October 2024, a major missile strike by Iran targeting sites through Israel led 2.67% DXY during the month.
Traders highlight the recent Bitcoin force
While the US dollar has not increased during the recent conflict, Bitcoin (BTC) experienced volatility.
On Sunday, Bitcoin briefly dropped below $ 100,000 for the first time since early May. However, since the fragile ceasefire of US President Donald Trump came into force on Monday, he has since rebounded, a merchant at $ 107,930 at the time of publication, according to CoinmarketCap data.
Crypto Matthew Hyland analyst said “bulls have control”, while others highlight the strong Bitcoin resilience despite recent risk conditions.
Crypto is the emerging market trade today
“Bitcoin broke two tendencies down 2 weeks in the last month,” said Crypto Rekt Capital analyst on Wednesday.
Real Vision cost made comparisons between the current macro environment and the early 2000s, when a weakened dollar resulted in emerging markets and raw materials.
“If you remember 2002-2008, the last depreciation of the major dollar turned on a fire under actions and raw materials,” cost cost.
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“EM has surpassed the DM by 3x while Capital has driven out strong growth savings-giving birth to BRICS,” he said, adding that the new emerging market is crypto:
“The crypto is EM. Capital of today moves where the energy is located,” he said.
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This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
