The US Dollar, the “Stable” currency of the world, saw another sharp drop today, only extending the losing streak that’s been going on for the past ten months. As it stands now, the USD is trading at its lowest recorded since April of 2018.
Reuters Seemingly Bullish For BTC
Reuters, a renowned international news agency, has made a historic headline about the matter. This article’s title is as follows: “Dollar plummets on US stimulus hopes; Bitcoin hits an all-time peak.” In the article, it’s clear that this tumble in the USD is primarily thanks to the US Congress discussing a second COVID relief bill to be issued.
Alongside this, Steve Mnuchin, the Secretary Of the US Treasury, has recommenced negotiations with Nancy Pelosi, the Speaker of the House of Representatives.
As the piece detailed the USD going further into its tumble, the news agency highlighted Bitcoin, and it’s very bullish price action. Indeed, the world’s first cryptocurrency had managed to push past its all-time high, even if it was just briefly, and for the second day in a row. This all happened on Tuesday.
The First Of Many Such Headlines: Voorhees
Erik Voorhees stands as the CEO of ShapeShift, and has long since been an advocate for Bitcoin. The man remarked that the headline looked like something he expected for 2024, not today of all times. Even so, Voorhees speculated that this is one of many headlines like it coming within the next few years.
Looks like a headline from 2024… but I guess we should assume it won't be one headline, but many over the coming years.
— Erik Voorhees (@ErikVoorhees) December 1, 2020
Some names within the Bitcoin space made direct comparisons to Reuters’ headline and the headline from the Times famously incorporated within the Bitcoin Network’s Genesis Block: “Chancellor on the brink of second bailout for banks.” They couldn’t help but highlight the massive changes occurring from then to now.
The USD Index stands as a measure of the USD’s value in relation to a basket of other currencies, namely the Japanese Yen, the Euro, the Canadian Dollar, the Pound Sterling, the Swiss Franc, and the Swedish Krona.
USD Going Through A Tough Time
The relative value of it started out at 100 back in 1973. This index started to reach an all-time high back in October of 1984, reaching a value of 151. Its all-time low stands at 71.8, and was recorded in April of 2008 during the market crash. Now, however, the index stands at 91.1, which is a low the country had not witnessed for over two and a half years.
The USD had seen a drop when compared to other currencies and heavily-traded assets throughout these years. This includes a large number of stocks and commodities.
The inflation-induced devaluation of the USD was only sped up this year thanks to the US Government trying to bring some relief to its people with the COVID-19 pandemic. They did so through an economic stimulus, which reportedly only helped Bitcoin drive up to new heights.