Mon, May 29, 2023 @ 05:14 GMT
HomeContributorsFundamental AnalysisBTC/USD Analysis: Is Bitcoin a Reserve Currency?

BTC/USD Analysis: Is Bitcoin a Reserve Currency?

According to the IMF, at the end of 2022, the share of USD in the reserves of national banks of different countries was 58%; to compare, in 1999, its share was over 70%. At the same time, more and more countries are calling for abandoning the dollar in trade.

Bloomberg writes that USD value is under pressure because of:

→ tough Fed policy;

→ banking crisis in the US;

→ strengthening of the yen and yuan.

At the same time, Arthur Hayes, co-founder of the BitMEX exchange, has opined that bitcoin can become a reserve currency — in his opinion, the exchange rate of the main cryptocurrency against the US dollar can reach 1 million.

The bold predictions of crypto enthusiasts are becoming more fantastic as the BTCUSD chart forms a bearish pattern — a false bullish breakout of a long-term downward channel. Orange marks indicate price action, which confirms the validity of the channel: if the price continues to move within it, the scenario of a decline to the USD 20k level will become more realistic.

FXOpen is a global Forex and CFD Broker, founded in 2005 by a group of traders. With over 16 years of experience, the company has gained an excellent reputation a major brokerage that continues to expand rapidly. The broker offers a choice of platforms, including the popular MT4 and MT5 platforms, with a wide range of trading instruments with spreads from 0.0 pips: 600+ FX, index, share, commodity and cryptocurrency CFDs. FXOpen also provides its own PAMM technology, allowing clients to benefit from the strategies of experienced traders with a proven track record of successful trading and guarantees automatic distribution of profit and loss between the strategy provider and the strategy followers. CFDs are complex instruments and come with a high risk of losing your money. PAMM is only available in certain jurisdictions. Cryptocurrency CFDs are not available to Retail clients at FXOpen UK.

Featured Analysis

Learn Forex Trading