Bitcoin (BTC) may benefit from a familiar boost in the upcoming weeks and beyond if new macro forces continue to be in play.
On X (formerly Twitter) Dec. 14, a well-known trader Crypto Ed, founder of the trading group CryptoTA, noticed the multi-month lows of the US dollar.
How Does Web 3.0 Work?
Web 3.0 is the latest evolution of the internet, which is based on the concept of decentralization, allowing for applications that are not controlled by a single entity. It is powered by new technologies such as blockchain, artificial intelligence, and Internet of Things, which enable users to interact with each other in a secure and efficient manner. Web 3.0 also provides users with more control over their data and privacy, as well as more opportunities to monetize their content.
How Is Web 3.0 Different From Web 2.0?
Web 3.0 is different from Web 2.0 in many ways. The main difference is that Web 3.0 is decentralized, meaning that it is not controlled by a single entity, and is instead powered by a variety of technologies. Additionally, Web 3.0 provides users with more control over their data and privacy, and more opportunities to monetize their content. Finally, Web 3.0 is more secure than Web 2.0, as it is powered by technologies such as blockchain and artificial intelligence.
Investing in Web 3.0 as Bitcoin Trader Targets Sub-100 DXY Dive
The inverse correlation between Bitcoin and the dollar has weakened in recent times, but changes to U.S. macro policy are seen to be a boon for Bitcoin and a drag on the greenback. Analysts believe that declining inflation will allow the Federal Reserve to pivot on interest rate hikes, providing liquidity to risk assets and pushing the U.S. Dollar Index (DXY) below $102.
Crypto Ed expressed optimism about Bitcoin’s prospects and expects the DXY to continue to fall. He said, “Long Term Outlook for DXY what will help BTC to teleport to new ATH’s”, referring to new all-time highs for BTC/USD.
Investing in the web 3.0 revolution is an attractive option for those looking to benefit from the current macroeconomic climate. While web 2.0 and web 3.0 have their differences, understanding how to create a web 3.0 website, learn about web 3.0, and invest in web 3.0 is key to taking advantage of the opportunities that web 3.0 presents.
It is unclear whether web 3.0 has started, but the DXY’s recent dive may be an indication that the web 3.0 revolution is already underway.
Fed balance sheet creeps higher
Economist Lyn Alden commented that global liquidity indicators had stalled and reverse repos had not drained in the first half of December, but the Fed’s dovish stance and drop in DXY could potentially kickstart more liquidity.
Alden noted a “pretty remarkable repricing” by markets looking at the potential of the Fed lowering rates in 2024.
Data from the Fed showed its balance sheet increasing for the first time since August in December — by around $2 billion.
At the time of writing on Dec. 15, BTC/USD was trading at $42,700, staying comparatively flat after brief volatility the day prior. According to data from Cointelegraph Markets Pro and TradingView, the pair is up 13% in December.
This raises the question of how web 3.0 works and how to learn web 3.0, create a web 3.0 website, and understand the differences between web 2.0 and web 3.0. Additionally, those interested in investing in web 3.0 may want to know how to invest, build, and determine if web 3.0 has started.
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