ING Bank: Bullish cryptocurrency has a negative impact on the US dollar

The cryptocurrency market is hot, and the main financial institution, ING, has also noticed this and even predicted that the latest round of cryptocurrency market bull market may have a negative impact on the US dollar exchange rate .

Chris Turner, head of global strategy at ING, warned in the latest foreign exchange analysis report: "The price of commodities (and cryptocurrencies) is strong, and the cost of dollar hedging has fallen sharply. The dollar remained weak this week."

Turner’s point of view is correct: the DXY index, which measures the performance of the dollar against a basket of international currencies, is hard to find momentum in a new week of trading.

Turner highlighted several factors that could affect the dollar's decline. Federal Reserve Board President Jerome Powell will give a speech on the policy tomorrow, which may make traders nervous.

The US will also update the Personal Consumption Expenditure Deflator (PCE) on Friday. Turner said that another lower reading after last year may "follow the Fed."

As these events unfold, dollar market participants may become hesitant if they have not done so.

Turner's suggestion of these reasons, coupled with a lower cost of hedging the dollar (by investing in negatively related assets to offset risk terms), should make DXY's actions relatively slow in the short term.

At the time of the above analysis by ING, Bitcoin showed an amazing growth.

Shortly after the Bitcoin blockchain hit a new record for the highest hash rate, the price of Bitcoin broke through $10,000 and once broke through $11,000. BTC's trading price is around $10,900, which has risen 17% in the past seven days.

Source: Finance website