Dollar index falls, bitcoin wins

The panic flight of investors from the US dollar continues. Experts believe that the dollar's weaknesswill strengthen bitcoin in 2020-2021.

With a Biden presidency expected to inevitably be accompanied by Fed easing, the US Dollar Index hit 91.1– lowest level since April 2018.

The US Dollar Index (DXY) tracks the reserve currency's strength against a basket of other major world currencies.  

Analysts are convinced that amid new lowsthe world's reserve currency, cryptocurrency prices will only continue to rise. Against the backdrop of the Fed's monetary policy, rising inflation and the depreciation of most traditional assets, the cryptocurrency is confidently taking the place of a reliable investment asset. In addition, the speed of digitization of the economy and all aspects of life is increasing the demand for digital, global, limitless money.

Large companies have already rapidly burst intocryptocurrency market by transferring part of their assets to Bitcoin. The activity of Square and PayPal in the crypto market is recognition of the legitimacy of digital currencies.  

However, analysts do not advise to buy bitcoin now, at the peak of the price, predicting a possible correction of bitcoin and altcoins at the end of the year.

Experts advise paying attention to otherhard currencies –  choose the Swiss franc, euro, or consider foreign currency assets in the form of bonds and real estate funds. The main advice of many experts – diversify your investment portfolio by distributing capital between cryptocurrency, gold, stocks and fiat currency. 

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