BTC/USD Analysis: Is Bitcoin a Reserve Currency?

According to the IMF, at the end of 2022, the share of USD in the reserves of national banks of different countries was 58%; to compare, in 1999, its share was over 70%. At the same time, more and more countries are calling for abandoning the dollar in trade.

Bloomberg writes that USD value is under pressure because of:

→ tough Fed policy;

→ banking crisis in the US;

→ strengthening of the yen and yuan.

At the same time, Arthur Hayes, co-founder of the BitMEX exchange, has opined that bitcoin can become a reserve currency — in his opinion, the exchange rate of the main cryptocurrency against the US dollar can reach 1 million.

The bold predictions of crypto enthusiasts are becoming more fantastic as the BTCUSD chart forms a bearish pattern — a false bullish breakout of a long-term downward channel. Orange marks indicate price action, which confirms the validity of the channel: if the price continues to move within it, the scenario of a decline to the USD 20k level will become more realistic.

This article represents FXOpen Companies’ opinion only, it should not be construed as an offer, invitation, or recommendation with respect to FXOpen Companies’ products and services or as financial advice.