How the Dollar Affects Bitcoin and Other Cryptocurrencies

user avatar

by Giorgi Kostiuk

2 years ago

Real Vision’s chief crypto analyst, Jamie Coutts, suggests that the US dollar might obstruct the rise of Bitcoin and other digital assets. While he maintains a positive long-term outlook, Coutts emphasizes that the dollar's strength poses a short-term threat to Bitcoin.

The Dollar’s Influence on Bitcoin

Coutts notes that the macroeconomic environment has worsened, suggesting that a stronger dollar is detrimental to Bitcoin. He adds that the liquidity framework is sensitive to short- and medium-term momentum shifts.

The macro backdrop has deteriorated. The strength of the dollar is not good for Bitcoin.Jamie Coutts

The Current State of Bitcoin

Coutts believes there is a strong correlation between Bitcoin and global liquidity. He anticipates that despite short-term volatility, Bitcoin should continue to rise over the next one to two years, particularly with an increase in the M2 money supply.

Long-term, I’m at the point for this cycle; a 12-month forecast based on a linear relationship with liquidity.Jamie Coutts

Long-term Market Forecast

At the time of writing, Bitcoin (BTC) was trading at around $90,050. Investors closely watching the cryptocurrency market continue to monitor how the dollar’s strength may influence these markets.

In conclusion, Jamie Coutts notes that while the short-term strengthening of the dollar might negatively impact Bitcoin, a long-term growth of digital assets is expected, driven by increased liquidity.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Grayscale Appoints BitGo as Custodian for Hyperliquid Staking ETF

Grayscale has appointed BitGo Bank Trust as an additional custodian for its Hyperliquid Staking ETF to enhance custody services and operational flexibility.

user avatarAndrew Smith

Avalanche Sees Surge in Tokenized US Treasury Assets

The value of tokenized US Treasury assets on the Avalanche network has surged to approximately $545 million, marking a fourfold increase over the past year.

user avatarJacob Williams

Metaplanet Shows Liquidity Management with Strategic Bitcoin Transactions

Metaplanet sold 10,000 BTC for approximately $790 million and bought back 11,000 BTC for around $950 million, demonstrating its ability to manage liquidity effectively.

user avatarSon Min-ho

Navra Secures $19 Million in Series A Funding to Bridge Traditional Finance and Blockchain

Navra, a startup led by Mike Cagney, has successfully raised $19 million in Series A funding to enhance access to blockchain-based financial markets for traditional investors.

user avatarZainab Kamara

Arbitrum Proposes Strategic Initiative for USDG Stablecoin

Arbitrum has proposed a governance initiative to back USDG as a core strategic stablecoin within its ecosystem, including adding 100 million ARB to enhance liquidity and adoption.

user avatarTando Nkube

BitGo and HashKey Cloud Expand Partnership in Asia-Pacific

BitGo and HashKey Cloud have expanded their partnership to cover multiple areas of institutional crypto infrastructure, including staking, trading, custody, and asset tokenization in Singapore.

user avatarAyman Ben Youssef

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.