Bitcoin (BTC) may get fresh support for a record-breaking year in 2021 cheers to the demise of a familiar foe: the U.S. dollar.

Every bit various sources noted this week, the dollar is trading at almost 3-yr lows against various currencies and five-year lows against the Swiss franc.

Analyst: Long-term trend "clearly dollar weakness"

Weakness in the dollar tends to interpret into force for Bitcoin, and 2020 has been the year in which the U.S. dollar currency index (DXY) has go a reliable yardstick for cost direction.

BTC/USD (black) vs. Gold (bluish) vs. DXY (orange) one-twenty-four hour period chart. Source: TradingView

An changed correlation has been palpable throughout 2020, and while Bitcoin'south human relationship with DXY has broken downwards more recently, analysts remained convinced that the fresh lows were just good news for the cryptocurrency.

A combination of renewed hopes of global economic recovery and a new coronavirus stimulus package are the latest threats undermining the dollar. DXY striking 91.1 on Tuesday, its lowest since Apr 2018.

"When you get a written report that a bipartisan stimulus deal can get done afterwards hopes have been dashed, information technology's simply another reason to bid run a risk up and sell the dollar," John Doyle, vice president of dealing and trading at Tempus, told Reuters.

U.S. dollar currency index (DXY) weekly chart. Source: TradingView

Even Bitcoin skeptic Peter Schiff — every bit ever, fully enamored with gold — agreed with hodlers on the dollar's fate.

"The U.S. dollar is at present trading at its everyman level against the Swiss franc since Jan. of 2015," he noted on Midweek.

"This is a harbinger of things to come. The franc is leading the way, merely other currencies will soon follow. 2021 may be the worst year e'er for the U.South. dollar, at to the lowest degree until 2022."

Grayscale gives accidental buy signal for gold

On the topic of gold, meanwhile, Schiff's loyalty may presently be rewarded as the precious metallic bounces back from its electric current lackluster performance.

Barry Silbert, the founder of cryptocurrency asset management giant Grayscale, confirmed that the business firm had brought back its "Bitcoin-not-gold" advertisements this calendar month, a move that signals the market place believes that gold has bottomed, ane analyst said.

"Huge Buy betoken for gold traders," macro investor Dan Tapiero responded to the news.

"Yes, Barry is a brilliant man of affairs, visionary bitcoiner and dandy guy, but not a mkts trader and not a portfolio managing director. Last time he brought this advertisement out was May'nineteen, days before a xxx% golden rally kicked off. Likely selling the low again."