• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

How the Strong Dollar Affects Bitcoin

user avatar

by Giorgi Kostiuk

8 months ago


Jamie Coutts, chief strategist at Real Vision, emphasized that the strength of the dollar might hinder Bitcoin and digital asset growth. He cautions that the current economic scenario creates short-term risks for Bitcoin but remains optimistic in the long run.

The Dollar's Impact on Bitcoin

Coutts highlights that the worsening macroeconomic environment signals the potential negative impact of a strong dollar on Bitcoin. This is attributed to the sensitivity of liquidity frameworks to short- and medium-term changes.

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

Macroeconomic Environment

Coutts alerts that the dollar index (DXY) is hovering close to the 106 mark. Crossing this level could spell trouble for riskier assets.

DXY is just below a resistance level. Crossing this would not be good for risky assets.Jamie Coutts

Long-term Prospects for Bitcoin

Coutts sees a significant link between Bitcoin and global liquidity trends. He predicts that, despite potential short-term fluctuations, Bitcoin's value is likely to increase within the next one to two years, especially with an uptick 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

The dollar's strength poses short-term risks for Bitcoin, yet the long-term outlook for Bitcoin's value remains positive. The interplay between the dollar's performance and Bitcoin's value continues to be a critical market focus, with significant implications for the broader cryptocurrency ecosystem.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

New Opportunities in the Meme Cryptocurrency Market: Troller Cat Gaining Popularity

chest

Exploring the rise of Troller Cat amid shifts in meme cryptocurrencies and the current status of Shiba Inu and Pepe.

user avatarGiorgi Kostiuk

Bit Digital Makes $67.3 Million Ethereum Purchase, Strengthening Its Holdings

chest

Bit Digital invests $67.3 million in Ethereum, raising total holdings to nearly 120,306 coins.

user avatarGiorgi Kostiuk

Block Inc. Joins S&P 500, Replacing Hess Corp.

chest

Block Inc. will replace Hess Corp. in the S&P 500, potentially impacting Bitcoin's acceptance by institutional investors.

user avatarGiorgi Kostiuk

XRP Sets New Record Following Legislative Changes

chest

XRP hit $3.66, surpassing previous records due to increased investor interest and the expected signing of the GENIUS Act.

user avatarGiorgi Kostiuk

MEI Pharma and Litecoin: New $100 Million Treasury Strategy

chest

MEI Pharma has announced a $100 million treasury strategy with Litecoin, led by Litecoin creator Charlie Lee. Market reaction was volatile.

user avatarGiorgi Kostiuk

Merkel Urges for a Cohesive EU Response to US Tariffs

chest

Merkel calls for EU unity in response to US tariffs that may disrupt trade chains.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

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.