Weakening dollar historically good for Bitcoin course – is the next bullrun coming?

In history, Bitcoin rose by 500% to 1,367% after the US Dollar Index fell to the level of 100 points. Will history repeat itself? Marcel Pechman is in any case positive based on these statistics about the further development of the Bitcoin course.

Is China trying to weaken the US dollar?

According to a report from Reuters on April 9, the Central Bank of China tries to encourage domestic parties to buy fewer American dollars.

The Chinese Yuan is under pressure and now the government asks if large banks want to support the national currency. Although some analysts think that China is trying to weaken the US dollar, Jim Bianco looks at it very differently.

Bianco does not believe that China sells so many American government bonds with the intention of weakening the economy of the United States.

He points out that the DXY (dollar index) has remained stable around the level of 102 points. China would sell government bonds, but the proceeds simply persist in US dollars. So they do not change these to their own currency or other government coins.

For that reason, Jim Bianco doubts the narrative that China wants to hurt the United States in this way.

Bitcoin needs this

At the moment the dollar index is acting at 102.665 points and is not yet below the 100 -point limit, which according to Marcel Pechman is so important.

The last time the DXY was below 100 points was in June 2020 during the COVID-19 Pandemie. Shortly thereafter, the Bitcoin came rate from 9,450 dollars to $ 57,490.

In April 2017 we saw the same and shot the Bitcoin course in a matter of months from 1,200 dollars to $ 17,610. So in the past we saw considerable increases at times when the US dollar was under heavy pressure.

So that can yield a nice scenario, but don’t forget that there is no Dxy of less than 100 points at the moment. For that, the dollar still has to fall quite a bit.

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