The US Dollar Is Soaring While The GDP Contracts

The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

Revisiting The Dollar Bitcoin Relationship

In more recent issues, we’ve highlighted that over the last few months, bitcoin’s price has been a function of larger macroeconomic conditions of rising yields and credit unwinding leading to increased equity market volatility and rising U.S. dollar strength.

As of late, the Dollar Currency Index (DXY) which tracks the relative strength of the U.S. dollar measured against other key global currencies, is hitting new 20-year highs as major currencies like the euro, Japanese yen and British pound continue to weaken. The latest rise comes as the Bank of Japan triples down on their yield curve control efforts, purchasing an unlimited amount of 10-year bonds every business day to cap yields at 0.25%. 

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