Economist Tuur Demeester, who is known as one of the most reputed Bitcoin analysts, forecasts that a new fiat currency bear market will make the U.S. Dollar stronger.
To make his point, Demeester compares greenbacks to Bitcoin, which tends to chip away at the market share of altcoins during bear markets.
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Get ready for a blow-off dollar
The DXY index, which determines the value of the U.S. dollar against other major fiat currencies, reached its multi-year high of 102.96 on March 19 when the coronavirus-driven market turbulence reached a tipping point.
Demeester appears to be on the same page with macro investor Raoul Pal who predicted a “blow-off dollar” back in April. However, Pal only bets on Bitcoin and gold in the long-term.
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Bitcoin dominance is in an uptrend
In the meantime, Bitcoin’s dominance recently approached its 2017 levels after it crashed in Q1 due to a strong altcoin rally. According to pseudonymous crypto trader DonAlt, it is in a clear uptrend.
It’s worth noting that the coin’s growing market share is not necessarily indicative of a bear market. While this was true in 2018, the crypto king continued to annihilate altcoins in Q2 2019 when it was in the middle of a major bull run.