There seems to be an antagonistic performance trend between the world’s reserve currency, the United States Dollar (USD), and Bitcoin (BTC), the first-ever digital currency. While the USD is on track for its 8th positive week, Bitcoin is comparatively on a bearish slide according to current on-chain data.
The US Dollar vs Bitcoin Competition
According to a Bloomberg report, the current positive trend in the US Dollar is the most emphatic growth run since 2005. This bullish growth for the greenback is notably fueled by critical improvements in the service sectors, which have outperformed the goods sector by a 2.5-point margin over at least six months and four times over the past 10 years.
This growth is not mainly a piece of positive news for Bitcoin which is changing hands at a price of $25,734.32 after taking a negative beating by about 0.53% in the past 24 hours. In reality, Bitcoin cannot boast of the same sustained growth run as the US Dollar is currently charting at the moment as its performance in the trailing 7-day period has been erratic, cresting at a loss of 7.99% at the time of writing.
With the Dollar getting stronger, the chances that more conservative investors will be pursuing more dollar-hinged investment assets is high. The devolution of interest through this means might also account for why funds appear to be exiting Bitcoin as showcased by its metrics including trading volume which is down Month-to-Date (MTD).
Potential Switch in Tempo
There is a very noticeable dynamism in the financial ecosystem which cuts across both the traditional finance world and crypto and that is how transient growth in assets can be.
This trend is positioned to allay any form of fears with respect to the current divergent relationship between the BTC and USD. While the US Dollar is seeing the best of its days in close to a decade, Bitcoin’s outlook can be positively flipped especially if some of its positive growth trends are brought into perspective.
One of these growth trends is the probable approval of a spot Bitcoin Exchange Traded Fund (ETF) product by the Securities and Exchange Commission (SEC). Should the broader consensus from industry experts with respect to the likely approval come to fruition, we can expect capital to flow in a unilateral manner from Traditional finance into Bitcoin, a trend that can bolster its price outlook overall.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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