Bitcoin (BTC) held gains above $21,000 through Nov. 5 as the US dollar posted a rare major daily decline.
Dollar sinks 2% as risk assets rally
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD building on previous strength to hit highs of $21,473 on Bitstamp, a new seven-week high.
The pair had benefited from the latest US economic data, while the dollar suffered on the contrary. The US dollar index (DXY) lost 2% in one day for the first time in years, helping fuel a rally in risk assets.
“And so Bitcoin has cleared all the highs, the volume is picking up and it is back above $21,000 again,” commented Michaël van de Poppe, CEO and founder of the trading company Eight.
“I guess we will continue towards $22,500 from here, but we will have a slight correction before we continue (as we remove all liquidity). Shop fall season.
BTC had previously become notorious for its lack of volatility and narrow trading range, which helped it outperform even stocks for the first time.
“For the first time in history, bitcoin is less volatile than the S&P 500 and the Nasdaq,” he pointed Yassine Elmandjra, Crypto Analyst at ARK Invest, regarding the company’s latest report, “The Bitcoin Monthly.”
“The last time volatility was this low, Bitcoin surged from $9,000 to $60,000 in less than a year.”
Tyler Winklevoss, co-founder of the Gemini trading platform, meanwhile, revealed a belief that the crypto markets would continue to act as a leading indicator of the overall trajectory of the market, as in 2021.
“Cryptocurrencies were the first asset class to crash; He will be the first to rise again.” summarized.
Bitcoin more stable than major fiat currencies
Continuing the theme of low volatility, the ARK report, led by well-known analyst David Puell, showed that it wasn’t just stocks that were being undermined by Bitcoin’s stability.
“The relative volatility of Bitcoin has not only decreased relative to stocks, but also to major currency pairs. As macroeconomic uncertainty and USD strength increase, currency pairs have been negatively affected, while Bitcoin has remained relatively stable,” stated The Bitcoin Monthly.
“Bitcoin’s 30-day realized volatility is roughly equivalent to that of the British Pound and Euro for the first time since October 2016. While the Fed’s aggressive stance could continue its volatility, Bitcoin’s strength relative to the foreign currencies is an encouraging sign.
As Cointelegraph reported, another popular analyst, LookIntoBitcoin creator Philip Swift, has predicted the end of the current bear market by early 2023.
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