Dollar will continue to shrink against the rise of cryptocurrency rates.



Leading analyst of the financial company Real Vision, Jamie Coutts, is confident that the American Dollar will continue to shrink against the rise of cryptocurrency.

If you remember the period from 2002 to 2008, you know that the significant depreciation of the Dollar ignited stocks and commodities in emerging markets, which tripled the inflow of capital compared to established markets.
Investors paid attention to the rapidly rising young economies and thus laid the foundation for BRICS. Today, cryptocurrency represents an emerging market. Money flows where there is energy. Fiat currency is going into the shadows, wrote Kutts.

Jamie attached a chart to his message showing that the Dollar index began to decrease back in 2023, and this year the rate of its decline has noticeably accelerated. As a result, the fiat currency has weakened to its lowest level in the last three years.
At the same time, the chart began to show a rise in capital inflow into emerging markets, to which Kuttz refers to digital assets. Therefore, in the event of a repetition of the trends observed from 2002 to 2008, we are in for a multi-year period of Dollar devaluation alongside an increase in the value of certain virtual currencies.

Change in the Dollar index (white line) and the volume of capital inflow to emerging markets compared to established (green)

Bitcoin is a modern emerging market. All other cryptocurrencies can be called useless junk, the price of which soars for a short period of time and then crashes like a meteor, as aptly summarized by crypto trader Willy Dee.
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