The US dollar index fell sharp today, with a 10-month extension of a loss streak putting it at its lowest since April 2018.
International news agency Reuters marked the occasion with a story headlined, “Dollar Plummets on Hopes of US Stimulus; Bitcoin reaches record high ”. The article noted that the fall coincided with today’s news of a second COVID bill under discussion in Congress and the resumption of negotiations between US Treasury Secretary Steve Mnuchin and Speaker of the House Nancy Pelosi . The piece contrasted the falling dollar with the rising price of Bitcoin briefly exceeded all record highs for the second day in a row on Tuesday.
I certainly didn’t expect to see a headline like this in the mainstream press. pic.twitter.com/istPVkw9Sc
– Dan Held (@danheld) December 1, 2020
“Looks like a 2024 headline,” said Erik Voorhees, ShapeShift CEO and former Bitcoin attorney, in a tweet on the Reuters headline. “… but I think we have to assume that for the next few years it will not be one cup, but a lot.”
Some Bitcoiners compared the Reuters headline with that of the Times headline embedded in the Bitcoin Genesis block “Chancellor on the eve of second bank bailout”, noting the importance of the changes between now and then.
Historically, Reuters is not known for its positive coverage of Bitcoin, but this may be changing. Last week, the news agency published one story examining the likelihood of a $ 100,000 price target for Bitcoin by the end of 2021, and the week before, a story about how this year’s “bubble” differs from 2017’s.
The US Dollar Index is a measure of the value of USD against a basket of other currencies; the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.
Starting at a relative value of 100 in 1973, the index reached a record high of 151 in October 1984 and a low of 71.8 in April 2008. It currently stands at 91.1 – a low that has not been observed for more than two and a half years.
The USD has also fallen over the years against a number of other currencies and heavily traded assets, including many commodities and stocks. The dollar devaluation through inflation was accelerated this year by the U.S. government’s efforts to provide COVID-19 assistance in the form of economic stimulus measures, which according to experts, helps take the price of BTC to unprecedented heights.