As you see Bitcoin’s and US10Y’s trends have been quite positively correlated ever since the March 2020 COVID flash crash, and it appears to be mostly due to the Fed’s and U.S. government’s policy on extreme monetary printing in the form of economic rescue packages for the economy. At the same time an initially declining DXY , seems to have found support in 2021, dealing hurdles to Bitcoin’s rise.
However the combined pattern of the DXY and US10Y since mid July seems very similar to that mid-August to late October 2020. In 2020 that mix literally paved the wave to BTC’s parabolic phase. Can we see a similar aggressive rise this time around? I suppose the Fed will have more to tell the markets this week on that matter but technically the sequence seems quite similar.
What do you think? Is this all a hyper mix for Bitcoin or the recent pull-back can escalate into a bigger correction as in May? Feel free to share your work and let me know in the comments section!
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