{"id":552730,"date":"2023-09-25T09:30:16","date_gmt":"2023-09-25T09:30:16","guid":{"rendered":"https:\/\/wncen.com\/?p=552730"},"modified":"2024-06-11T08:00:36","modified_gmt":"2024-06-11T08:00:36","slug":"bitcoin-drop-20000-eurusd-correlation","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-drop-20000-eurusd-correlation\/","title":{"rendered":"Will Bitcoin Drop To $20,000? EURUSD Correlation Indicates It Might"},"content":{"rendered":"
In recent discussions surrounding Bitcoin (BTC) and its potential future price trajectory, crypto-enthusiasts and analysts alike are finding new correlations to dissect. Most notably, a correlation with the EURUSD pair (the euro against the US dollar) has come into the spotlight due to a Twitter thread by esteemed analyst Josh Olszewicz.<\/p>\n
Olszewicz begins by setting the stage, drawing attention to the widely acknowledged inverse correlation between Bitcoin and the DXY (US Dollar Index). He notes, “Most are aware of the strong historic BTC-DXY inverse correlation. DXY is a USD index against a basket of currencies which has a EURUSD weighting of around 58%. So the BTC-EURUSD correlation should also be relatively high.”<\/p>\n
Will Bitcoin Price Follow EURUSD?<\/h2>\n
What’s intriguing here is the observation Olszewicz makes about the BTC-EURUSD correlation in the period following the pandemic and the last Bitcoin halving. He mentions that the “post-pandemic (post-halving) EURUSD pair has led BTC in both the bullish and bearish direction by anywhere from a month to a full year.”<\/p>\n