The Dying Dollar Is Fueling Cryptos’ Rally
The U.S. dollar is slowly decaying, and that’s having real implications on your money.
Since March 2020, the U.S. Dollar Index has dropped 12%, and more downside is ahead.
Investors who remain unprepared could be in trouble — but others can use the dollar’s weakness to add to their wealth.
The dollar’s demise is paving the way for gains in one asset class in particular: cryptocurrencies.
Institutions Poured Money Into Cryptos in 2020
Cryptocurrencies are digital currencies whose transactions are verified by a decentralized system.
The most notable cryptos are bitcoin and Ethereum, both of which have doubled in price over the past two months.
These two cryptos aren’t the only ones making gains though. The whole crypto market is heating up.
As you can see in the chart below, over the past two months the Bitwise 100 Total Market Crypto Index (green) is up 101%. Meanwhile, the dollar (purple) has continued its downtrend.
Over the past two years, cryptocurrencies have primarily exhibited a negative correlation with the U.S. dollar.
This would suggest that as the value of the dollar declines, the values of cryptos increase.
That’s a big reason why institutions poured money into cryptos in 2020.
Institutional crypto product inflows totaled $1.1 billion during the week before Christmas alone.
Cryptos aren’t just a hedge against dollar weakness, either. There is potential for massive gains.
Over the past four years, the Bitwise Crypto 100 Index is up 3,669%.
The Crypto Bull Market Is Far From Over
At Smart Profits Daily, we’ve been calling for a crypto bull market since before the mania began last year.
Readers who took action had a chance to make huge gains. And it looks like the crypto bull market is far from over.
According to Ian King, the crypto market looks just like the dot-com industry did when it started rallying after the 2000 to 2002 bear market.
That tech boom led to the rise of household names such as Facebook, Google and Amazon.
To find out how cryptocurrencies are disrupting internet-based platforms around the world, click here to watch Ian’s new presentation.
Analyst, Automatic Fortunes