Weak Dollar Equals Strong Bitcoin

The Federal Reserve in the US has taken all the actions that would normally cause a drop in USD exchange rates. However, as the world is in the early phases of an economic shutdown due to coronavirus, the demand for US dollars is still intact.

Since, last week the US financial regulators increased the supply of US by more than $2.2 trillion dollars along with decreasing the interest rates to 0%. This is perfect recipe of a collapse of USD due to heightened supply.

The massive sell-off in the traditional stock and commodities markets to increase cash positions, along the global demand for US dollar liquidity seems to be balancing the supply shocks that US keeps delivering.

However, the FX markets are now absorbing the shocks as the demand price creeps back up near the 50-Day EMA as the demand of US dollar is increasing due to the virus scare.

The crisis has brought Bitcoin at an important cross-road in it’s…