Tuesday, December 1, 2020

The stunning (reverse-)correlation of Forex (USD) and Crypto (Bitcoin)

Nobody is talking about the EUR:USD pair breaking a 12 year trend, which is odd. This very trend was established as a result of the 2008 crisis.

I can't help but think Forex and Crypto are somehow extremely (reverse-)correlated. Seems that USD is going down in value while many other currencies from "stable economies" and Crypto are going up.

See: https://www.tradingview.com/symbols/EURUSD/?exchange=FX

Note that the large fluctuations of the EUR:USD pair often coincide with a local top or bottom of Bitcoin against USD, with the most notorious event being late 2017's all time high.


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