{"id":118111,"date":"2020-11-23T12:00:00","date_gmt":"2020-11-23T09:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/us-dollar-squeeze-and-19k-btc-5-things-to-watch-in-bitcoin-this-week\/"},"modified":"2020-11-23T12:00:00","modified_gmt":"2020-11-23T09:00:00","slug":"us-dollar-squeeze-and-19k-btc-5-things-to-watch-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/us-dollar-squeeze-and-19k-btc-5-things-to-watch-in-bitcoin-this-week\/","title":{"rendered":"# US dollar squeeze and $19K BTC: 5 Things to watch in Bitcoin this week"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3be42268639\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3be42268639\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/us-dollar-squeeze-and-19k-btc-5-things-to-watch-in-bitcoin-this-week\/#DXY_descends_to_familiar_lows\" >DXY descends to familiar lows<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/us-dollar-squeeze-and-19k-btc-5-things-to-watch-in-bitcoin-this-week\/#Supply_squeeze_%E2%80%9Cbiggest_story_in_Bitcoin%E2%80%9D\" >Supply squeeze \u201cbiggest story in Bitcoin\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/us-dollar-squeeze-and-19k-btc-5-things-to-watch-in-bitcoin-this-week\/#Fundamentals_stage_a_serious_rebound\" >Fundamentals stage a serious rebound<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/us-dollar-squeeze-and-19k-btc-5-things-to-watch-in-bitcoin-this-week\/#PlanB_Big_price_gains_are_yet_to_come\" >PlanB: Big price gains are yet to come<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/us-dollar-squeeze-and-19k-btc-5-things-to-watch-in-bitcoin-this-week\/#Fear_Greed_slowly_cools\" >Fear &amp; Greed slowly cools<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># US dollar squeeze and $19K BTC: 5 Things to watch in Bitcoin this week <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) starts another week at near historic highs as the U.S. dollar continues to drop \u2014 what\u2019s next?<\/p>\n<p>With investors seeking safe havens and Bitcoin already seeing a demand squeeze, Cointelegraph covers the factors that could further shape price action this week. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"DXY_descends_to_familiar_lows\"><\/span>DXY descends to familiar lows<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> from the U.S. that mass vaccination against the Coronavirus may begin within a month has sent investors panicking for hedge assets.<\/p>\n<p>With multiple candidates now available among potential vaccines, the mood is tending towards worldwide recovery emerging, which means the dollar becomes less <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ealing compared to other destinations.<\/p>\n<p>\u201cThe vaccine news is favoring the view of a sooner-rather-than-later global economic recovery with the USD losing its safe haven appeal along the way,\u201d Rodrigo Catril, a currency strategist at National Australia Bank, told <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-11-23\/dollar-falls-to-2018-lows-as-vaccine-progress-fuels-risk-demand\">Bloomberg<\/a>. <\/p>\n<blockquote><p>\u201cThis is a risk-positive, USD-negative backdrop, especially with the Fed likely to remain ultra-dovish for some time.\u201d<\/p><\/blockquote>\n<p>The U.S. dollar currency index (DXY), which tracks USD against a basket of twenty trading partner currencies, has fallen lows seen twice since August, with monthly losses totalling nearly 2.2%.<\/p>\n<p>As Cointelegraph often reports, DXY tends to show an inverse correlation to Bitcoin, meaning protracted weakness comes in tandem with stronger BTC\/USD performance. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/b7eaa737-fd97-4f52-81d5-193d3e5f293f.png\"><figcaption style=\"text-align: center;\"><em>U.S. dollar currency index 3-month chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The outlook for the dollar remains uncertain thanks also to the risk of fresh sanctions by the White House on Chinese tech firms, details of which are expected this week. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Supply_squeeze_%E2%80%9Cbiggest_story_in_Bitcoin%E2%80%9D\"><\/span>Supply squeeze \u201cbiggest story in Bitcoin\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Within Bitcoin, the emerging narrative that buyers are simply demanding more coins than can be produced continues. <\/p>\n<p>As noted previously, this is being driven by corporate entities, notably Grayscale, Square\u2019s Cash App and PayPal, with the requirements of all three only rising with time as more clients choose to buy BTC.<\/p>\n<p>The result is that miners see their block subsidies snapped up, and the only way for the buy side to plug the gap is to pay higher prices per coin. <\/p>\n<p>\u201cPayPal and Cash App are already buying more than 100% of all newly-issued bitcoins,\u201d investment firm <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/panteracapital.medium.com\/bitcoin-shortage-172a9205dc0\">Pantera Capital<\/a> summarized in a blog post on Nov. 21.<\/p>\n<blockquote><p>\u201cWhere would Cash App get their coins? That\u2019s where the finite-supply, inelasticity part comes in: At a higher price. That is THE story in Bitcoin right now.\u201d<\/p><\/blockquote>\n<p>Pantera included a chart of volume from ItBit, the exchange run by Paxos, the payment handler covering PayPal\u2019s new cryptocurrency feature. PayPal alone, it added, appears already to be buying 70% of all newly-mined bitcoins.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/93d9c822-39e8-45a0-8303-42be838a9039.png\"><figcaption style=\"text-align: center;\"><em>ItBit volume chart. Source: Pantera Capital<\/em><\/figcaption><\/figure>\n<p>The new status quo differs markedly from the last time that Bitcoin traded at levels near $20,000. Unlike then, various figures argue, those buying this time are by definition in it for the long run. <\/p>\n<p>\u201cAt $18.5K #Bitcoin Google searches for \u2018bitcoin\u2019 have not seen an uptick. This is not a FOMO rally. It&#8217;s steady hands. Few understand this,\u201d Gemini exchange co-founder <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/cameron\/status\/1330656046721986564\">Cameron Winklevoss<\/a> tweeted on Monday.<\/p>\n<p>Last week, comments from one traditional market strategist underlined the seeming lack of interest in Bitcoin from mainstream consumers. This, she told Bloomberg, had died in 2017.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fundamentals_stage_a_serious_rebound\"><\/span>Fundamentals stage a serious rebound<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>After its 4.82% increase last week, Bitcoin\u2019s network difficulty is set to lead a resurgence in fundamentals in five days\u2019 time. <\/p>\n<p>Difficulty and its automatic readjustments \u2014 after every 2016 blocks \u2014 are an essential feature in Bitcoin allowing it to maintain constant block mining intervals without outside intervention and, thus, ensuring network stability.\u00a0<\/p>\n<p>At the beginning of November, difficulty dropped by the most in nine years in a single readjustment. This created a more accessible playing field for miners, with the expectation that increased activity would make difficulty rise again thanks to the ensuing competition.<\/p>\n<p>As such, at the end of this week, difficulty should bounce upwards by an estimated 7.7%, almost reversing the impact of the previous dip and opening the path to new all-time highs. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p>Likewise, Bitcoin\u2019s average hash rate \u2014 the estimated computing power dedicated to validating transactions \u2014 has hit 137 exahashes per second (EH\/s), rebounding 30% since the difficulty drop.<\/p>\n<p>Seven-day average hash rate\u2019s all-time high currently lies at 146 EH\/s, this appearing in mid October.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/70efd250-2853-4be5-9ede-f0502706e686.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin 7-day average hash rate 2-month chart. Source: Blockchain<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"PlanB_Big_price_gains_are_yet_to_come\"><\/span>PlanB: Big price gains are yet to come<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Zooming out \u2014 even slightly \u2014 is still a cause for major bullishness among some of Bitcoin\u2019s best-known analysts.<\/p>\n<p>For <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/100trillionUSD\/status\/1330469160980242432\">PlanB<\/a>, creator of the stock-to-flow-based <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a> of price forecasting models, the real upside for Bitcoin is still yet to come, despite monthly gains already totalling 43%.<\/p>\n<p>This is due to historical behavior after block subsidy halving events. In 2012 and 2016, upside ensued months after the halving, but serious gains came the following year \u2014 and looked more like a tsunami than a slowly increasing tide. <\/p>\n<p>\u201cCurrent #bitcoin price action is nice, but we are waiting for a real jump (like the red arrows early 2013 and 2017),\u201d he tweeted alongside an annotated chart. <\/p>\n<blockquote><p>\u201cIMO that will be the start of the real bull market, and indeed phase5. January 2021?\u201d<\/p><\/blockquote>\n<p>As Cointelegraph reported, PlanB is far from alone in considering next year to be the return of Bitcoin\u2019s halcyon days. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/0a7c6f01-40f7-478e-9336-bed87b485955.jpeg\"><figcaption style=\"text-align: center;\"><em>Bitcoin price performance with halvings highlighted. Source: PlanB<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Fear_Greed_slowly_cools\"><\/span>Fear &amp; Greed slowly cools<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A concerning counterargument to further gains for Bitcoin last week came in the form of worrying readings from the <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\">Crypto Fear &amp; Greed Index<\/a>.<\/p>\n<p>Using a basket of factors to measure investor sentiment, the Index almost matched highs from 2019, which culminated in a significant price drop. <\/p>\n<p>As of Monday, however, the metric\u2019s current \u201cextreme greed\u201d rating of market sentiment is slowly beginning to ease off, dropping from 94\/100 to 90\/100. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/f13ac240-3fe1-4652-94bc-8144673788dc.png\"><figcaption style=\"text-align: center;\"><em>Crypto Fear &amp; Greed Index. Source: Alternative.me<\/em><\/figcaption><\/figure>\n<p>\u201cExtreme greed\u201d refers to the rapidly deteriorating strength of investor resolve as prices increase, signalling the increasing likelihood of a sell-off. <\/p>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/us-dollar-squeeze-and-19k-btc-5-things-to-watch-in-bitcoin-this-week\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# US dollar squeeze and $19K BTC: 5 Things to watch in Bitcoin this week &#8221; Bitcoin (BTC) starts another week at near historic highs as the U.S. dollar continues to drop \u2014 what\u2019s next? With investors seeking safe havens and Bitcoin already seeing a demand squeeze, Cointelegraph covers the factors that could further shape&#8230;<\/p>\n","protected":false},"author":1,"featured_media":118112,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/43873572-ac16-4ffb-98ee-765e4ecface8.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,73785],"class_list":["post-118111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/118111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=118111"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/118111\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/118112"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=118111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=118111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=118111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}