It is safe to assume that Bitcoin’s parabolic rally in 2020 has everything to do with the underperformance of its arch-nemesis, the US dollar.
The charts tell the entire story. In March 2020, a 60 percent crash in the Bitcoin market coincided with an 8.80 percent jump in the US dollar index, a barometer to measure the greenback’s strength against a set of foreign currencies.
But later, Bitcoin regained its bullish momentum as its price notched higher by more than 600 percent. Meanwhile, the US dollar fell by up to 12.87 percent from its mid-March high.