{"id":266810,"date":"2021-06-04T19:00:00","date_gmt":"2021-06-04T16:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/forget-elon-heres-why-bitcoin-traders-should-be-watching-the-us-dollar-index-instead\/"},"modified":"2021-06-04T19:00:00","modified_gmt":"2021-06-04T16:00:00","slug":"forget-elon-heres-why-bitcoin-traders-should-be-watching-the-us-dollar-index-instead","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/forget-elon-heres-why-bitcoin-traders-should-be-watching-the-us-dollar-index-instead\/","title":{"rendered":"# Forget Elon, here&#8217;s why Bitcoin traders should be watching the US Dollar Index instead"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a23d33b7be4a\" 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-6a23d33b7be4a\" 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\/forget-elon-heres-why-bitcoin-traders-should-be-watching-the-us-dollar-index-instead\/#Elon_Musk_is_a_phase\" >Elon Musk is a phase<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Forget Elon, here&#8217;s why Bitcoin traders should be watching the US Dollar Index instead <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) prices fell by almost 5% on June 4, continuing the decline into the Friday session as investors gr<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>led with Elon Musk&#8217;s cryptic tweets on the cryptocurrency, raising speculation that the Tesla CEO might dump the firm&#8217;s remaining 43,2000 BTC stash. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"und\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a>  <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/lNnEfMdtJf\">pic.twitter.com\/lNnEfMdtJf<\/a><\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/elonmusk\/status\/1400620080090730501?ref_src=twsrc%5Etfw\">June 4, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>Nonetheless, Bitcoin&#8217;s move downside also coincided with a big spike in the U.S. dollar index (DXY), raising speculation that more than one factor accelerated the cryptocurrency&#8217;s dramatic plunge during the late Thursday and early Friday session.<\/p>\n<p>In retrospect, the U.S. dollar index, which measures the greenback&#8217;s strength against a basket of top foreign currencies, surged 0.18% to reach a three-week high of 90.627 after Musk&#8217;s tweet. Meanwhile, the same period witnessed Bitcoin prices crashing by 9.31% to hit an intraday low of $35,593.<\/p>\n<p>The chart below illustrates Bitcoin&#8217;s im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te response to Musk&#8217;s tweet \u2014 a big red candle on hourly charts followed by extended declines. However, while not reacting exclusively to Musk&#8217;s anti-Bitcoin tweet, the dollar also starts rising on sustained upside bids in traditional markets, eventually logging its biggest daily gains since September 2020.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/10295f35-9c75-49e7-a88d-23c5a3e692cb.jpg\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin&#8217;s drop after Musk&#8217;s tweet also coincided with a rebound in the US dollar index market. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Seasonal cryptocurrency traders perceive Bitcoin as an anti-dollar asset, primarily because the benchmark crypto proposes to work as a haven against fiat devaluation. The narrative has picked momentum primarily after March 2020&#8217;s COVID-19 pandemic-led global market crash. <\/p>\n<p>The event prompted the Federal Reserve to unleash unprecedented supportive measures, including near-zero interest rates and unlimited bond-buying programs, to safeguard the U.S. economy from the pandemic&#8217;s aftermath.\u00a0<\/p>\n<p>Meanwhile, the U.S. government launched three consecutive stimulus programs \u2014 $2.8 trillion in March 2020, $900 billion in December 2020, and $1.9 trillion in March 2021 \u2014 to help Americans through direct-check payments with more likely on the way.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/21b8aee9-3ff5-4de3-9748-9416512515b0.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Month-by-month U.S. public debt since April 2020. Source: Statista<\/em><\/figcaption><\/figure>\n<p>The expansionary policies upped the U.S. public debt burden from $24.97 trillion in April 2020 to $28.174 trillion in April 2021. As a result, the dollar&#8217;s strength against major currencies has plumbed by more than 12.5% since March 2020. Meanwhile, Bitcoin&#8217;s performance in the same period sits at the north of 855%.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">This Graph Shows The Development Of A 1000 USD Investment In <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> and traditional investments such as <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Stocks?src=hash&amp;ref_src=twsrc%5Etfw\">#Stocks<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Gold?src=hash&amp;ref_src=twsrc%5Etfw\">#Gold<\/a> or <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Dollar?src=hash&amp;ref_src=twsrc%5Etfw\">#Dollar<\/a>. <\/p>\n<p>Bitcoin Despite Of The High Volatility Heavily Outperformed All Of Them In The Recent 10 Years. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/TIae6U7PTo\">pic.twitter.com\/TIae6U7PTo<\/a><\/p>\n<p>\u2014 Vince Prince (@VincePrince244) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/VincePrince244\/status\/1400111746321354752?ref_src=twsrc%5Etfw\">June 2, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The overnight Thursday decline in the Bitcoin market confirmed a brief negative correlation with the U.S. dollar on short timeframes. <\/p>\n<p>However, on the weekly chart, the two assets continue to trend inversely to one another, reminding that Musk, with his $1.3 billion BTC exposure in a $690 billion market, remains irrelevant against much more pressing macroeconomic concerns, including inflation.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/24172b63-34f4-4821-94cb-fb3382dc2c15.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin and U.S. dollar index negative correlation intact since March 2020. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Elon_Musk_is_a_phase\"><\/span>Elon Musk is a phase<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Tesla continues to struggle to generate earnings from its electric vehicles&#8217; sales, showing the company&#8217;s first-quarter filings. Of the $594 million it reported, only less than $100 million came from its actual business \u2014 the rest, on the other hand, came through the sale of its profitable BTC holdings (~272 million) and regulatory credits.<\/p>\n<p>In short, Musk&#8217;s Bitcoin <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> is similar to that of a retail trader. <\/p>\n<p>The billionaire entrepreneur has so far treated cryptocurrency as a tool to offset his company&#8217;s underperformance. <\/p>\n<p>That is further evident with his flip-flop moves on accepting BTC as payments, followed by tweets that he might have Tesla dump its entire Bitcoin holdings, further leading to his breakup meme \u2014 that incidentally arrives on the same day when global media reported a 50% decline in the sales of Tesla cars in China over quality issues.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Tesla&#8217;s China orders halved in May &#8211; The Information <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/byiMlnKqWk\">https:\/\/t.co\/byiMlnKqWk<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/uSYoh9n5ei\">pic.twitter.com\/uSYoh9n5ei<\/a><\/p>\n<p>\u2014 Reuters (@Reuters) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Reuters\/status\/1400545352894271496?ref_src=twsrc%5Etfw\">June 3, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>But Musk&#8217;s influence on the Bitcoin market is reducing with each of his anti-crypto tweets, proves the scale of the cryptocurrency declines. For example, his mid-May Twitter spat with crypto influencers crashed the BTC\/USD exchange rate from as high as $58,000 to as low as $30,000 \u2014 a circa 42% decline. But even then, the pair pared almost 30% of those losses later.<\/p>\n<p>In comparison, the latest Elon Musk candle ended up wiping only $3,500 off the Bitcoin valuation, logging a circa 9% intraday loss.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Attributing this dump to Elon is a denial that the break out had no volume and couldn&#8217;t break the 39,5k resistance. When he tweeted the price was already dropping after maybe 3 attempts to break<\/p>\n<p>\u2014 FF My\u00f6h\u00e4\u00e4nen (@myohaanen) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/myohaanen\/status\/1400820193845207043?ref_src=twsrc%5Etfw\">June 4, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Hence, Bitcoin continues to trade upward long-term, driven higher by the same anti-dollar fundamentals that attracted companies like Tesla to it in the first place. More bullish cues for the cryptocurrency expects to come from President Joe Biden&#8217;s $6 trillion government spending package that would add further downside pressure on the U.S. dollar. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Biden&#8217;s Massive Debt Plan And Fed&#8217;s Monetization Can Really Hurt The US Dollar Reserve Status.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/S7dFgOvYFY\">https:\/\/t.co\/S7dFgOvYFY<\/a><\/p>\n<p>\u2014 Daniel Lacalle (@dlacalle_IA) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/dlacalle_IA\/status\/1398721554414927872?ref_src=twsrc%5Etfw\">May 29, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>For now, the cryptocurrency remains in a technical limbo, waiting for a decisive move out of the current $32,000-$40,000 range. Musk is old <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>. Move on, Bitcoiners.<\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em> <em>The views, thoughts and opinions expressed here are the author&#8217;s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\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\">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\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/forget-elon-here-s-why-bitcoin-traders-should-be-watching-the-us-dollar-index-instead\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Forget Elon, here&#8217;s why Bitcoin traders should be watching the US Dollar Index instead &#8221; Bitcoin (BTC) prices fell by almost 5% on June 4, continuing the decline into the Friday session as investors grappled with Elon Musk&#8217;s cryptic tweets on the cryptocurrency, raising speculation that the Tesla CEO might dump the firm&#8217;s remaining&#8230;<\/p>\n","protected":false},"author":1,"featured_media":266811,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvOGNmNWE0MWQtM2EyZi00MTRmLTg2N2QtMDJjMDllNDAxMmU0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[79806,74862,74939,75164,39394],"class_list":["post-266810","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-analysis","tag-bitcoin","tag-market-analysis","tag-price-analysis","tag-elon-musk"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/266810","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=266810"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/266810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/266811"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=266810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=266810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=266810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}