Dollar Drops 50% From 2022 Peak on Fed’s Easing Prospects — Bitcoin Recovery Ahead?
Published By Jassimran Singh
5 December 2022
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Notably, US dollar index (DXY) drop came from dovish statements from Fed Chair Jerome Powell on Nov 30.
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Dollar Loses Altitude
A slowdown in hawkish policies means faster growth and a bullish phase for the stock market.
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Powell signaled the Fed would slow the pace of interest-rate increases. Borrowing costs will need to keep rising and remain restrictive for some time to beat inflation.
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Bitcoin vs. DXY
Bitcoin’s high correlation with risk-on assets, it tends to suffer in times of economic distress.
What’s Ahead for the Crypto Market?
Geopolitical situation could cause more chaos for global markets, the Fed’s dovish approach for December sent the broad dollar into a pit.
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Crypto investors should note that a confident recovery might not occur in December, as evidenced by the declining trading volumes on the chart above.
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