[Taklimakan Blog] Bitcoin Price Will Continue to Rise as the Dollar Falls Further
The weakening of the US dollar index directly affects the inflow of stablecoins to the exchanges with which they buy bitcoin, OKEx said Jay Hao, CEO of cryptocurrency exchange OKEx, believes that the current rise in the price of bitcoin is directly fueled by the weakening dollar. Hao wrote about this on his LinkedIn page.
As one of the reasons, Hao notes that interest rates on US Treasury bonds have been regularly adjusted downward, along with historical quantitative easing policies.
The head of OKEx believes that the historical policy of quantitative easing led to the sale of many US dollars, which led to a decline in the US currency index. At the same time, the number of short positions in the USD derivatives market reached new highs since April 2018, Hao notes.
Searching for the ark
The CEO of OKEx believes that international hedge funds are increasingly betting on a further fall in the US dollar lately, which plays in favor of the largest cryptocurrency by capitalization.
“While bitcoin may not yet have achieved value-saving status, it is an alternative global investment beyond gold,” Hao wrote.
He also added that with the growth of gold and the simultaneous fall of the dollar, people will more actively begin to transfer paper savings into bitcoin and other digital currencies.