It has been revealed that a trillion-dollar debt could trigger the US dollar decline. Check out the following reports below.
Billion-dollar debt could kill the US dollar
A well-known crypto analyst believes that a specific on-chain metric indicates a positive future price trend for Bitcoin (BTC).
In a recent YouTube video, the anonymous host of InvestAnswers examined Bitcoin’s yearly absorption rate on exchanges.
The analyst referenced an absorption chart provided by Glassnode, a crypto analytics firm, which defines the metric as a comparison of the yearly exchanges’ balance change to the volume of BTC mined during the same period.
The analytics firm explained the following:
“This provides a relative measure of the amount of new issuance which was theoretically absorbed by this cohort. Note that values over 100% are possible as coins can be transferred from other investor cohorts.”
The InvestAnswers host made sure to say the fact that the current absorption pattern indicates “much higher prices in the future” for BTC.
On the right side of the graph, the absorption rate of Bitcoin is negative. This indicates that more Bitcoin is being withdrawn from exchanges than being deposited, which is a net drainage.
A negative absorption rate is generally considered bullish as it suggests that there is less selling pressure. This means that investors are holding onto their Bitcoin instead of selling it on exchanges.
It’s worth noting that the current yearly absorption rate for exchanges is minus 100%, which is a significant figure to consider.
According to Paul Gruenwald, the chief economist at Standard and Poors Global (S&P), the US dollar is losing its status as the global reserve currency.
Speaking at a conference in London, Gruenwald mentioned that the dollar no longer has the same level of influence it once had.
In order to learn more details, we suggest that you check out the previous article that we shared not too long ago.
