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The trend over time of the value of Bitcoin is usually correlated with that of the US dollar.  For precision, in the medium/long term, the variations in the price of Bitcoin are inversely correlated to those of the Dollar Index, the index that measures the strength of the US dollar compared to a basket of other important currencies globally.  The decorrelation of Bitcoin from the value of the dollar Sometimes, however, in the short term, this inverse correlation breaks.  It is what happened after Donald Trump’s victory in the presidential elections on November 5 in the USA.  In fact, that day the Dollar Index was well below 104 points, and in just over two weeks it rose to over 107 points, marking the highest annual record of 2024. Trump’s victory, however, also gave wings to Bitcoin. The value of a Bitcoin before the elections was less than $70,000, while in just over two weeks it has risen well above $99,000. In other words, in the same period in which the Dollar Index was rising, Bitcoin was also rising, both driven by Trump’s victory.  The return to normality This dynamic continued until November 22.  In the four following days, the Dollar Index fell, returning abundantly below 107 points, and the value of Bitcoin also fell, momentarily returning below $92,000.  So until November 26, the two trends seemed apparently correlated.  The return to normality, that is the inverse correlation between the trend of the Dollar Index and that of the BTC price, arrived last Wednesday, November 27.  In fact, on that date, the Dollar Index continued to fall, so much so that by Friday it had also dropped below 106 points, while the price of Bitcoin started to rise again.  However, the decline of the dollar was small and brief, so it…

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Filed under: News - @ December 2, 2024 10:26 am