The musical artist and blockchain architect MartyParty posted on his Twitter page that the volume of the US Dollar is diminishing and is about to drop almost 80%. He added that the world has started losing confidence in the US Dollar witnessing the weakening volume as volume was its strength.
Notably, on March 30, MartyParty tweeted that “USD is now a risk on asset,” adding that the USD volume falls as people switch to other options:
Significantly, the USD volume has been exhibiting a negative inclination following the fall of the banking domains, namely, Signature Bank (OTC:SBNY) and Silicon Valley Bank (SVB).
Comparatively, the US Dollar had a substantial performance in 2022, with its index reaching a 20-year high of 114 in September 2022. However, the aggressive monetary policies and interest hikes of the Federal Reserve resulted in the latest decline of the USD Index (DXY).
USD Index
Meanwhile, several attempts have been put forward by the country to tighten the restrictions on crypto; the US officials have been lobbying their Canadian and UK counterparts which Balaji Srinivasan, the former Chief Technology Officer of the crypto firm Coinbase (NASDAQ:COIN) explained as an attempt to “block the exits before the digital devaluation of the dollar.”
Interestingly, the inflation data has also impacted the DXY to have a significant drop. The dollar’s reposition is supposedly a result of the expectations of the Fed’s slower rate hikes and a larger potential terminal rate for US interest rates.
Usually, several factors including geopolitical events and macroeconomic aspects decide the performance of the US Dollar. To add, the performance of the dollar has a high impact on other fiat currencies as well as cryptocurrencies.
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Source: Cryptocurrency - investing.com
