Bitcoin is very often cited as a safe haven when fiat currencies show weakness. When the US dollar now seems to have found some bottom after a week-long low and went up a little, Bitcoin has shown itself to be weak. This shows that there is a noticeable correlation between Bitcoin and the US dollar.
Bitcoin weak while USD rises
Just before the weekend, the price of Bitcoin fell from around $ 11,880 to $ 11,511. This is a 3 percent setback, which is not very bearish, but it coincides with exactly when the US Dollar Index (DXY) saw relief after a four-month fall.
Dollar value increased
The dollar is up from $ 92.28 to $ 93.20, an increase of 1.3 percent. During this surge, safe haven assets like gold and bitcoin and other cryptocurrencies have fallen. This move confirms the inverse correlation between and the US dollar value. Bitcoin trading worldwide sees an upward trend when the US dollar is falling. Over the past month, many merchants in Nigeria have moved towards Bitcoin when the USD fell 4 percent in value.
Rich Dad writer, Poor Dad, Robert Kiyosaki warns Anelger about the GE dangers of only keeping Fiat in their portfolio. On numerous occasions he has berated national US banks for consistently printing money and depreciating the value of the USD. For this reason, he urges investors to instead add Bitcoin and precious metals such as gold or silver, all with limited supply and thus increasing demand, to their portfolio.