Is a US Dollar Collapse Necessary for Bitcoin to Hit $200,000? Bitwise Says ‘No’

Bitwise recently published a report addressing the question of whether a US Dollar collapse is necessary for Bitcoin to reach $200,000, and the answer is a resounding “no.”

According to the report, the correlation between Bitcoin and the US Dollar has weakened over time, and Bitcoin is now primarily driven by its own fundamentals such as its limited supply and its growing adoption as a store of value.

The report notes that in the early days of Bitcoin, its price was closely tied to the US Dollar, but this correlation has since weakened as Bitcoin has matured as an asset class. In fact, the report finds that over the past year, Bitcoin has actually performed well during periods when the US Dollar has strengthened.

The report also points out that Bitcoin is not the only asset that has benefited from the US Dollar’s weakness. Gold, another safe-haven asset, has also performed well in recent months. This suggests that investors are increasingly looking for alternative investments to protect their wealth from inflation and other risks.

So, while a US Dollar collapse is not necessary for Bitcoin to reach $200,000, it is certainly possible that such a collapse could accelerate Bitcoin’s rise. If the US Dollar loses its status as the world’s reserve currency, it is likely that investors will flock to Bitcoin and other safe-haven assets.

It is important to note that the report does not make any predictions about the future price of Bitcoin. However, it does provide evidence to support the argument that Bitcoin is not dependent on a US Dollar collapse to reach new highs.