Cameron Winklevoss, the CEO of Gemini, recently used Twitter to warn Bitcoin detractors about his lack of understanding of what was happening to the U.S. dollar.
In the tweet, Cameron obviously alludes to the main mantra of Bitcoin evangelists who believe that the rapid depreciation of greenbacks would lead to another bullfight.
If you don’t understand Bitcoin as an investment, what you are really demonstrating is that you don’t understand what’s happening to the U.S. dollar.
– Cameron Winklevoss (@winklevoss) June 29, 2020
The dollar is on the cusp of another cycle
The US Dollar Index (DXY) started this week on a cold note, dropping more than 0.40 percent to an intraday low of 97.11.
Since then it recovered from its during the current trading session and went back up in green.
According to Julius Baer Group technical analyst Mensur Pocinci, the dollar is now on the brink of another major cycle after five years of flat performance:
“The currency has been stable since the first quarter of 2015, during which it has made three attempts to start a new trend and failed. Now, after five years of stable performance, a new long-term trend is likely to start. ”
As recently reported, Gold Bullion International co-founder Dan Tapiero predicted ‘a big drop in the USD’ against the Euro.
This, according to Tapiero, could be optimistic for both Bitcoin and gold that prosper with the weakness of the dollar.
Deflation is more likely
A myriad of Bitcoin advocates, from Mike Novogratz of Galaxy Digital to 'Rich Dad author Poor Dad' Robert Kiyosaki, continues to repeat that recent impression of money and the subsequent devaluation of the dollar would be optimistic for Bitcoin.
However, the narrative is slowly crumbling as the Federal Reserve predicts deflation is actually a more likely scenario than inflation (76.3 percent), according to a tweet published by Reuters journalist Ritvik Carvalho.