Will A Stronger Dollar Crash Bitcoin?

Tony Spilotro on NewBTC often writes contrarian views. Just five hours ago he wrote a piece in which pointed out that the DXY, which is the US Dollar against a basket of other fiat currencies, seems to have found support and may be in for a reversal.

https://www.newsbtc.com/analysis/btc/bitcoin-coinbase-crypto-dollar-reversal/

I've heard people talk about potential for a reversal for Bitcoin at this time, or even and end to the bull market in this cycle.

What I have to say about that is that it is dangerous to rely on a single indicator in trading. In terms of the four-year cycles, Bitcoin should have more upside left despite having been in a very strong bull market ever since last September.

In my opinion, the DXY has fundamentals going against it. Asian countries dealt with the pandemic much better than Europe and North America. China, Taiwan, Japan and Korea swiftly contained the spread and were able to open their societies much sooner thus limiting the economic damage incurred. The USA and also Europe failed to limit the spread, which is why the public debt burden is much higher than in Asia. Based on those factors, I don't think the dollar is going to exhibit strength relative to the Asian currencies in the coming years. Owing to its reserve currency status, money printing even greatly ramped up to pay for the deficits will most likely not weaken it too much in the near future but I consider it likely that the DXY will not go up too much.

I do think that late summer is the time to begin to watch out for signs of reversal. This co-incides with what Felix Zulauf said in the interview with Raoul Pal that I posted a link to yesterday about risk-on assets, which cryptocurrencies very much are. I cannot possibly say when the current bull market will end with any degree of confidence. But I believe it will happen between September and New Year. It would be prudent to consider starting to take profit at the end of next summer.

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