by Rushali 
Bitcoin is now leading the price action at the FX markets (Foreign exchange ).
According to a news article published this week, The dollar was trading flat on Monday when bitcoin touched a new high. The bull run of bitcoin due to Tesla’s news has helped EUR/USD to continue its Friday gains despite the dismal eurozone investor confidence data.
The currency had a breakout from its sideways movement and expanded its Friday gains. The breakout happened an hour after Tesla’s news helped BTC to touch a new ATH of $42000.
On Monday Tesla has announced that they are purchasing a $1.5 billion value of bitcoins.
It does appear as though FX traders sold dollars, lifting EUR/USD higher, as the greenback took a hit against bitcoin, a perceived inflation hedge/digital gold. The macro factors like Eurozone’s slow vaccine delivery and relatively tepid economic recovery are pulling the EUR/USD down.
Both the cryptocurrency and the currency pair was trading higher on Friday. While bitcoin has reached a new all-time high of $48,925 and the currency pair was trading above 1.2100.
It cannot be said that bitcoin is a lead indicator in the FX market but experts believe that it is on that path only.
The traders believe that bitcoin has more store value than normal currency and that’s the reason behind its bullish phase in long term.
