The bitcoin rate will reach $20,000. If one condition is met

The bitcoin rate will reach $20,000. If one condition is met

The outlook for the cryptocurrency is directly dependent on the dollar, said Michael van de Poppe, an analyst at the Amsterdam Stock Exchange. He explained what the asset bond is, and how it helped BTC rise by 1900% in 2017

The rise in the bitcoin exchange rate to $20,000 will depend directly on the dollar, Amsterdam Stock Exchange analyst Michael van de Poppe suggested in a column on Cointelegraph. The expert explained that the decline in the US currency is a key driver of the BTC price hike. There are several confirmations of this.

For example, in March, the stock and cryptocurrency markets collapsed sharply, Poppe continued. Bitcoin fell from $10,000 to $3,800, while the leading U.S. stock index of the S'amp;P 500 decreased from 3,150 to 2,200 points. At the same time, the DXY dollar index, showing its strength against other national currencies, rose from 95 to 102 points.

Since then, the dollar has become cheaper. The DXY index has so far fallen to 94 points, briefly falling to 92.2 points. At the same time, gold and bitcoin were becoming more expensive. During this period, the price of cryptocurrency increased by 180%, from $3800 to $10,700, several times rising above $12,000.

Accordingly, if the dollar continues to lose ground, it will be a driver of the growth of the price of bitcoin, Poppe believes. He said that such dependence has already been manifested twice between assets. The last time this happened was in 2017. Then the DXY set the maximum just above the 102 point mark. Then it started to decline and by January 2018 fell to a local low below 90 points.

In 2017, bitcoin was more expensive against the background of falling dollar prices. In January, the coin was worth about $1,000. By December, its rate had risen to $20,000 and set a historical high at this level. Both assets showed similar, opposite dynamics in 2014, Poppe said.

In his opinion, now the prospects of the dollar are doubtful because of its growing emission. Bitcoin, on the other hand, "feels good." The US currency is likely to continue to weaken due to the low key rate in the US and the growing national debt. This makes the price of cryptocurrency likely, as it was in 2017. It is possible even to reach the price of BTC "six-digit figures", although a decline of 25-30% from the current values is also possible, Poppe concluded.

Yesterday, September 29, researchers of the analytical service Coin Metrics suggested that theeuphoria that has been present in the cryptocurrency market in recent months, is over. Over the past week, the value of 72% of the top 250 coins in terms of capitalization has fallen, and for the month - 93%. This goes against the confidence of investors in the growth of the rate of digital assets, which was pronounced in early September.


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