- But over the past few weeks, and ever since April really, the U.S. dollar has been in a steep decline.
- Many in the cryptocurrency space and in the broader investment world see this as a win for alternative currencies such as gold and even Bitcoin.
CNBC Runs Segment About Dollar Drop, Effect on Bitcoin
While all eyes have been on Bitcoin over recent weeks, more and more investors in the space are taking notice of the U.S. Dollar. The USD is by far the world’s reserve currency, accounting for a majority of foreign exchange and international commerce transactions.
But over the past few weeks, and ever since April really, the U.S. dollar has been in a steep decline.
The U.S. Dollar Index (DXY) recently pushed under 92.00, marking a strong shift in the trajectory of the currency.
Many in the BTC space and in the broader investment world see this as a win for alternative currencies such as gold and even Bitcoin.
Case in point: CNBC recently aired a segment that was titled “King Dollar Being Dethroned.” According to Preston Pysh, a financial analyst and author closely tracking Bitcoin, this segment included an image of “Bitcoin” wearing a crown.
CNBC is airing a segment this afternoon titled:
“King Dollar Being Dethroned”
And the image on the TV screen was a Bitcoin wearing a crown…
— Preston Pysh (@PrestonPysh) December 4, 2020
Many in the investment world think that further inflation of the U.S. dollar will result in Bitcoin and gold rallying. Investors that see this include Stanley Druckenmiller, one of the world’s best asset managers with decades of experience, and investors in the space such as Raoul Pal.
BTC is Seriously Undervalued?
Some investors think that Bitcoin’s market capitalization is undervalued, especially considering macro trends such as the drop of the U.S. dollar.
Paul Tudor Jones, a Wall Street billionaire supportive of Bitcoin, recently said in an interview with Yahoo Finance:
“With a marketcap of $500 billion, it’s the wrong marketcap in a world with $90 trillion of equity and who knows how many trillion of fiat currency…it’s the wrong price for the possibilities it has”
Tudor Jones is up approximately 100% on his initial Bitcoin investment, made in April or May. He announced in May that he had allocated “low single digits” of his company’s portfolio to BTC futures via the CME market.
Tudor Jones thinks that Bitcoin will be the world’s best investment in a world where there is “unorthodox” monetary policy. He went as far as to say that the leading cryptocurrency can be likened to investing in Google or Apple early on.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k