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The Bitcoin bull run will continue in 2021 – Analyst predicts 20% dollar crash

Bitcoin Bull Run 2021 continues – Analyst

Earlier this year, Nasdaq-listed MicroStrategy converted its $425 billion cash reserves to Bitcoin. The company’s CEO, Michael J. Saylor, stated his bold call to invest in an asset that is known to remain volatile and unregulated, saying BTC has better „long-term value growth potential than holding cash.

Many analysts agree that MicroStrategy’s investment in the Cryptosoft scam market has prompted many other companies, investors, family offices, and asset managers to look at the crypto-currency from a different perspective: that of a value asset that can protect its owners from inflation. Now many of them openly admit that they bought Bitcoin (Now also Bitcoin buy? Here it goes to the guidance?

The result is visible on the spot and derivative markets of the crypto currency. The BTC/USD exchange rate has risen by almost 150 percent in 2020, reaching almost $18,500.

Analysts expect the pair to continue its upward trend towards $20,000, its record high reached in December 2017.
Bitcoin is trading 350 percent higher since its low in mid-March.

In the meantime, their bullish orientation is further boosted by a very bearish dollar forecast.

The dollar in trouble

Citi analyst Calvin Tse discussed the prospects of a weaker US dollar in a research note. According to Tse, the dollar could fall by up to 20 percent by 2021, citing the risks of reduced risk appetite due to the introduction of a COVID 19 vaccine and the Federal Reserve’s ongoing economic stimulus program.

„We believe the distribution of vaccines will tick off all our bear market signs, allowing the dollar to take a similar path to the one it took from the early to mid 2000s,“ Tse said. „Can the dollar fall 20 percent next year alone? We think so.“

Investors rush to the US dollar in times of global economic uncertainty. In March 2020, the greenback was one of the biggest beneficiaries when the lockdowns caused by the rise in COVID-19 cases led to a global market routine.

Even Bitcoin, an asset that switches roles between risk off and risk on, collapsed by nearly 60 percent in just 48 trading hours.
The US dollar index has fallen by more than 10 percent since its peak in mid-March.

But the prospects for economic recovery are improving. This increases the downward pressure on the US dollar. Compared to a basket of foreign currencies, it has already fallen by more than 4 percent this year.

#Bitcoin is a monetary network that gets stronger as more individuals & corporations adopt it to protect their treasury reserves The fire in cyberspace is spreading… https://t.co/FYECxu56EK
– Michael Saylor (@michael_saylor) November 18, 2020

A weaker dollar forecast could cause large companies to rethink their capital allocation strategy.