Bitcoin has experienced a significant uptick in value today, rising from early morning lows of $53,000 to as high as $56,500.
It is now within touching distance of forming a new all-time high above $58,500, which is quite remarkable considering it had just suffered a 26% correction in the final week of February.
Whilst previous all-time high surges came off the back of institutional investment from the likes of MicroStrategy and Tesla, the recent rise has not had a clear catalyst.
However, there has been notable inverse correlation with the US Dollar index (DXY), which is currently heading back to the downside following a rally from three-year lows.
The decrease in value of the US Dollar has been attributed to concerns over increasing inflation spurred from the upcoming economic stimulus.
Every asset and index that trades against the Dollar, gold and the stock market for example, have all experience dramatic upside this week as analysts begin to call for a new all-time high in the S&P500.
The wider cryptocurrency market has also rallied this week, with Ethereum and Litecoin making respective 8.9% and 11.2% moves to the upside since Sunday’s weekly candle closure.
If Bitcoin can hold above $55,000 before this evening’s daily close, it looks likely that a new all-time high will be breached before the end of the week.
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Disclaimer: This article is not intended as financial advice.