Why Did Bitcoin Skyrocket When the US Dollar Declined?

The price reaction to this is that both gold and Bitcoin have seen skyrocketing against the backdrop of a falling U.S. dollar rise in gold can be explained by the fall in the U.S. dollar which has increased global demand for safe-haven assets such as precious metals. Moreover, when gold rises to people’s psychological highs, many of the U.S. dollars that are still being continuously sold start to flow to Bitcoin and other digital currency markets.

At the same time, the upward momentum of gold has slowed down a bit, indicating that more U.S. dollars have begun to flow into the digital currency market for minting than these U.S. dollars were minted to USDT, part of them inflowed to the exchanges. It can be summarized as follows: The U.S. dollar index has fallen → the demand for hedging has increased → the price of gold has risen → the price of gold has reached a psychological high → investors start seeking other alternative investment products → the rate of USD minting as USDT has increased → more USDT flowing into exchanges → selling USDT and buying Bitcoin →  exchanges’ Bitcoin balance rises and Bitcoin’s price rises.

Timeline of Bitcoin, Tether