“Exponential Decay” Of The Dollar To Benefit Bitcoin Long-Term

Tony "The Bull" Severino

1 year ago

3 mins read

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Bitcoin is now reeling after a rejection prevented further highs around the time Coinbase Global went live on the Nasdaq. The same stock market has also been booming alongside crypto – both markets gone parabolic against a common denominator: the dollar.

The greenback’s “exponential decay” is poised to continue, further benefiting crypto and equities. However, some short term abatement of hyperinflation could bring pause to the bull market.

https://twitter.com/btcty/status/1384648732982009867?s=12

USD Inflation Drop Goes Parabolic Against Bitcoin, Stock Market

Flash back to around 14 months ago, before Black Thursday rocked finance and to when the pandemic first began. The stock market and cryptocurrencies were decimated by the panic that ensued.

But as a result of governments flooding the money supply with more money than ever before, both markets went ballistic. A bull market broke out in both stocks and cryptocurrencies, bringing all major indices to new all-times, and Bitcoin breaking all previous records.

The stock market and crypto are doing well for completely different economic factors and are such different asset classes, the real reason for the sudden parity is due to the dollar.

Crypto and the stock market have both gone parabolic against the dollar | Source: BTCUSD on TradingView.com

Exponential Decay To Continue, According To Dollar Currency Index

The dollar is in trouble – there’s no doubt about it. It’s value against other top world currencies according to the DXY has fallen. Against Bitcoin and stocks, the drop has gone parabolic.

Zooming out on the DXY could suggest that the worst is yet to come for the greenback. A massive symmetrical triangle has formed, similar in shape as the one Bitcoin broke upward from to start the bull market.

If the above pattern confirms, the dollar's fall hasn't even started | Source: TVC-DXY on TradingView.com

Except before Bitcoin consolidated, the previous trend was up. In the dollar, the prevailing trend has been down, and that’s where things could still be headed if “exponential decay” continues as expected.

A fall of such magnitude as the measure rule would project, could take the top currency in the world down to historic lows. And with USD as the base currency at which all other assets are measured, price action could get a little wild.

If that happens, even if somehow a strategy rolls out to prevent against short-term inflation and the dollar gets some air, fiat is dying a fast death at the hands of Bitcoin.

Technical factors in Bitcoin and stocks also point to correction enough to where the dollar gets some immediate relief. But after that, it is right back to destruction of the global reserve currency.

Featured image from Pixabay, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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