- Glassnode co-founders predict a surge in Bitcoin’s value to $120,000 on the imminent fall of the dollar.
- Elliott Wave Theory suggests that the decline in the DXY index will drive accelerated growth in cryptocurrencies.
Glassnode co-founders Jan Happel and Yann Allemann anticipate a promising future for Bitcoin and other cryptocurrencies due to the expected depreciation of the US dollar. According to these analysts, the dollar index (DXY), which measures the value of the dollar against a group of major foreign currencies, is close to ending a recovery phase to enter a downtrend.Â
This evolution of the DXY, grounded in Elliott Wave Theory, indicates that adjustment movements occur in three main phases, and at this time, the DXY would be completing its second phase, an upward push, before falling to new lows. This could generate an increase in the price of risk assets, including cryptocurrencies.
Against this backdrop, Happel and Allemann project accelerated growth in Bitcoin’s price, estimating that it could reach $120,000 by July of this year, based on Fibonacci extensions following corrections similar to those seen in the last two bull markets. The expectation is that Bitcoin will follow a similar correction pattern to 2017 and 2020, which would lead to a rapid rise in value.
At the time of writing this article Bitcoin is trading at $44,657.00
This analysis presents an optimistic view for Bitcoin’s immediate future, indicating that the leading cryptocurrency could see a rapid rise in value, driven by the weakness of the U.S. dollar and its impact on risk assets. The relationship between DXY strength and the performance of risk assets highlights how global macroeconomic conditions affect the cryptocurrency market.
