Bitcoin has begun another highly anticipated week that might show some historic highs while the US dollar is continuously declining. Found out more about it!
As the investors are looking for safe havens along with Bitcoin already aiming a squeeze in demand, here are the key factors that might possibly shape the price action throughout this week of November.
Details of US Dollar And Bitcoin
As we all are aware that the clinical trial of the COVID-19 vaccine to prevent further spread of the deadly virus is making headway progress with 90% effectiveness and has high chances of receiving its approval within this year. This news regarding the vaccine has made several stock market investors extremely anxious about the hedge assets.
The multiple candidates that are available among the potential coronavirus vaccines have given positive hope to all the people around the world that they might soon recover and curb the virus. This news also indicates that the US dollar will become less attractive as compared to the other destinations.
Rodrigo Catril, a currency analyst of the National bank of Australia, has recently stated that the news of the vaccine is very favorable for the people globally despite high chances of the decline of the US dollar as it might lose the safe-haven.
Since the month of August, the currency index (DXY) of the US dollar that tracks it against twenty other currencies that are the trading partners of the USD has declined twice significantly and incurred a monthly loss of almost 2%.
Cointelegraph has reported that the DXY is appearing to reveal an inverse correlation with Bitcoin which means that the protracted flaw comes in tandem against the stronger USD/BTC performance.
The followers of Bitcoin are already aware that BTC has a strong demand for freshly mined coins from institutional investors.
In fact, huge corporate entities like Grayscale, Paypal, and Cash App are the largest clients of Bitcoin and are continuously rising as the demand for BTC is increasing.
As a result, the miners are experiencing a snap up of their block subsidies and the only available option for the side of buy to fill the gap is by paying higher prices for each Bitcoin.
According to sources, Paypal alone owns approximately 70% of the entire freshly mined virgin Bitcoin in recent time.
BTC prices have surpassed $18.5K and are soon likely to surpass the $20K price levels as well.
The average Bitcoin hash-rate has touched 137 exahashes every second (EH/s) and a rebound rate of 30% beginning from the difficulty drop.
The hash-rate for seven-days is on an all-time high at 146 EH/s as of mid-October.
Currently, BTC is experiencing extreme greed that indicates a rapid decline in the strength of the investor resolve against the increase in prices and indicates an increase in the possibility of sell-off.