Bitcoin (BTC) maintained gains above $21,000 through November 5 as the US Dollar posted a rare major daily decline.
Dollar plunges 2% as risky assets rally
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD building on its prior strength to hit highs of $21,473 on Bitstamp – a new seven-week high.
The pair had benefited from the latest US economic data, while the dollar suffered on the contrary. The US dollar index (DXY) lost 2% in one day for the first time in years, helping to fuel a rally in risky assets.
“And, just like that, Bitcoin has hit all the highs, volume is rising and it’s back above $21,000,” Michaël van de Poppe, CEO and founder of trading firm Eight, commented.
“Guess we will continue towards $22.5000 from here but will have a slight correction before continuing (because we have withdrawn all liquidity). Buy dips season.
BTC had previously become famous for its lack of volatility and narrow trading range, helping it beat even stocks for the very first time.
“For the first time in history, bitcoin is less volatile than the S&P 500 and the Nasdaq,” said Yassine Elmandjra, crypto analyst at ARK Invest, Notedwith a link to the company’s latest report, “The Bitcoin Monthly”.
“The last time volatility was this low, bitcoin went from $9,000 to $60,000 in less than a year.”
Tyler Winklevoss, co-founder of the Gemini trading platform, meanwhile revealed his belief that the crypto markets will continue to act as a leading indicator of the overall market trajectory, similar to 2021.
“Crypto was the first asset class to crash; it will be the first to get up,” he said. abstract.
Bitcoin more stable than major fiat currencies
Continuing the low volatility theme, ARK’s report, led by well-known analyst David Puell, showed that it wasn’t just stocks that were being undermined by Bitcoin’s stability.
Related: Why Is The Crypto Market Up Today?
“Bitcoin’s relative volatility has not only declined against stocks, but also against major currency pairs. As macroeconomic uncertainty and USD strength increased, foreign currency pairs were negatively affected while bitcoin was relatively stable,” The Bitcoin Monthly said.
“Bitcoin’s 30-day realized volatility nearly matches that of GBP and EUR for the first time since October 2016. Although the Fed’s hawkishness may continue its volatility, Bitcoin’s strength against foreign currencies is an encouraging sign.”
As Cointelegraph reported, another popular analyst, LookIntoBitcoin creator Philip Swift, predicted the end of the current bear market by early 2023.
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