The decrease in the value of the US dollar is creating a favorable environment for a good second quarter for cryptocurrencies. Raoul Pal, CEO of Real Vision, says that a falling dollar, interest rates, and oil prices make the market better for risky investments like Bitcoin. BTC has increased almost 4% in the last 24 hours, while the US Dollar Index (DXY) has decreased 2.79 % since February 5 and is now at 104.258. Based on past patterns, Bitcoin and the broader crypto market trend to go up when the dollar goes down.
Raoul Pal predicts a Crypto Q2 Bull Run
Pal said in a March 5 X post that when financial conditions improve, risk investments usually follow a couple of months later. If these trends keep up, crypto could benefit from Q2 2024 and the second half of 2025.
According to figures from CoinGlass, Bitcoin has done well in Q2, which has been its third-best quarter on average, with returns of 26.89%. As the dollar gets weaker, more investors are looking to cryptocurrency to protect themselves from inflation and economic uncertainty.
Bitcoin Rises on Dollar Weakness
According to CoinMarketCap, the price of Bitcoin has gone up by 6% since February 5. It is now worth $91,860. In past market trends, there has been a link between the falling dollar and the rising price of Bitcoin.
For instance during the COVID-19 pandemic lower interest rates and other support measures weakened the dollar. This helped Bitcoin’s historic rise from $5,000 in March 2020 to over $60,000 by April 2021. In the same way when Donald Trump was chosen president in 2016, the stronger dollar caused Bitcoin prices to go down.
Future for crypto investors
According to financial experts, Bitcoin’s upward trend could continue in the coming months if the dollar loses value. In a recent X post, crypto trading site Bitcoinsensus stressed that a negative DXY has generally meant that Bitcoin will go up in value over the long term.
Conclusion
Monetary policy is changing, interest rates may decrease, and global trends are moving toward crypto. This could lead to another breakout quarter for Bitcoin and the digital asset market.
