Bitcoin rises against USD after Mnuchin promises second stimulus check

Bitcoin may see a price boost this week as the U.S. dollar currency index weakens and one analyst tells American voters to buy.

Data showed DXY dropping for a fourth day on Oct. 1, as negotiations over a new coronavirus stimulus deal continued in Washington.

Vays: "Buy Bitcoin" no matter who wins the U.S. election.

Recent DXY gains did not translate into intense selling pressure for Bitcoin, but fresh losses could yet buoy BTC bulls in the long term.

Speaking to FOX Business on Wednesday, Treasury Secretary Steven Mnuchin confirmed that talks were ongoing, but that any deal would include a fresh round of $1,200 stimulus checks for eligible U.S. citizens.

"No matter who wins they will keep printing so BUY BITCOIN," Vays wrote in a live chat as the debate aired.

The past days' retreat has meanwhile begun to alter the correlation between DXY and Bitcoin, data reveals.

Compiled by analytics resource Digital Assets Data, a comparison of Bitcoin 90-day returns correlations to DXY, gold, VIX and the S&P 500 shows DXY bottoming out at the end of September.

By contrast, BTC/USD remains highly correlated with both gold and the S&P 500 into October as the price of Bitcoin recorded its second-best quarter in history, closing the month above $10,600.

As Cointelegraph reported not everyone believes that the situation will last; Bitcoin should soon break away from traditional markets altogether.