USD Will Hit Cyclical Bottom In 4 Years, What Does It Mean For Crypto?

According to the projections, the USD will hit cyclical bottom in about four years or 2025, so it’s safe to assume that the BTC parabolic rally has a lot to do with the underperformance of the dollar but let’s find out more in today’s BTC latest news.

The charts show that back in March there was a 60 percent crash in the BTC market that coincided with the 8.80% jump on the USD index which usually measures the power of the dollar against foreign currencies.
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Later, BTC regained its bullish momentum and the price increased higher by 600% while the US dollar dropped to 12% from its March crash.

The USD bearish momentum started right after the Federal Reserve launched an open-ended bond purchase program and slashed its benchmark lending rates to zero. Then, the government launched a $2.3 trillion stimulus program to help the struggling Americans in the COVID-19 pandemic. For the investors, the scenario was clear as the supply of the dollar into the economy removed the purchasing power. Investors feared that their cash-based portfolio will suffer and they increased their exposure to riskier assets like BTC.

Bitcoin comes with a limited supply cap of 21 million and it most definitely benefited from these fundamentals. Entering 2021, the US economy faced the same set of fundamentals as the country’s COVID infection rates skyrocketed and prompted governments to impose new lockdowns. The jobless rates remained high and the White House passed another stimulus package worth $900 billion. BTC this time, reached a new record high of $28,300 with chances to hit $30,000 according to the projections.

One analyst noted that the USD will hit a cyclical bottom until 2025. His viewpoint borrowed cues from the cyclical trends of the dollar ever since the 1970s when the dollar witnesses three repetitive trends. He added:

 “That means that we are still a long way from seeing the cyclical bottom and the best course of action is to sell every rally.”

Ronnie Moas noted that BTC is on its way to hit $100,000 by 2022 if more institutions start using it as a hedge against the depreciating Dollar. The macro analyst predicted that BTC will hit $28,000 in late October but then stated that it will garner much of gold’s market cap in the future. A 20 points drop in the US dollar index will likely get more companies towards BTC and gold as safe-haven assets, as per Moas’s prediction.