The price of the leading cryptocurrency Bitcoin [BTC] has breached the tough hurdle of $19,500 USD & has jumped to 2-week highs, today on Wednesday.
The leading cryptocurrency by market price topped out at $19,780 USD within today’s trading hours. That’s the very best level since 1st Dec. when Bitcoin (BTC, +2.65%) hit its all-time high of $19,920 USD, consistent with CoinMarketCap.
It remains to be seen if bitcoin can hold ground above $19,500 USD. The cryptocurrency has failed multiple times to determine an edge above that level since 22nd Nov., courtesy of profit taking by some investors. Forcing the much-anticipated breakout above the psychological hurdle of $20k could also be an uphill task for the bulls within the short-run, as there are still large sell orders on the road to $20k, as reported earlier.
That said, the long-term bullish case for bitcoin, a widely-touted hedge against fiat currency devaluation and a store useful asset, continues to strengthen with observers predicting a deeper dollar decline later in 2021 and a rising global stockpile of negative-yielding bonds.
French multinational investment bank and financial services company Societe Generale now predicts a 5% fall for the Dollar Index [DXY] in 2021 and more losses within the following year, consistent with efxdata.com. Other prominent investment banks like Morgan Stanley, Goldman Sachs, and JP Morgan also expect the greenback to continue losing ground next year.
The Dollar Index, which tracks the greenback’s value against major assets, is hovering at a 32-month low of 90.20 at the reporting time. The worldwide reserve currency has declined by 6.5% this year, mainly due to Federal Reserve’s money-supply boosting policies aimed to counter the COVID-19 induced economic breakdown.