How the Strong Dollar Affects Bitcoin

user avatar

by Giorgi Kostiuk

2 years 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.

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

Federal Reserve Pauses Interest Rate Hike for Upcoming FOMC Meeting

The Federal Reserve is not expected to raise interest rates at the upcoming FOMC meeting, as indicated by recent forecasts and comments from Fed officials.

user avatarMaria Fernandez

Citigroup Increases Price Targets for Bitcoin and Ethereum

Citigroup has raised its 12-month price targets for Bitcoin to $113,000 and for Ethereum to $3,028, citing stronger activity in crypto markets and ETF inflows.

user avatarGustavo Mendoza

TopNod Introduces Axil Pot APT for Enhanced Onchain Yield Management

TopNod has launched Axil Pot APT, a new onchain yield vault that allows users to earn an estimated 8% APY while maintaining instant liquidity.

user avatarRajesh Kumar

MEXC Expands Guardian Fund with Additional 1,000 BTC

MEXC has added another 1,000 BTC to its Guardian Fund, marking the second major allocation this year.

user avatarMiguel Rodriguez

HANetf and HSBC Launch First GBP EUR-Hedged Bitcoin Products

HANetf and HSBC have announced the launch of the first GBP EUR-hedged Bitcoin products, marking a significant development in the digital asset ecosystem.

user avatarLuis Flores

Goldman Sachs Integrates $100 Billion Treasury Fund with Crypto Institutional Frameworks

Goldman Sachs has announced the integration of its $100 billion Treasury Fund with crypto institutional frameworks, marking a significant development in the digital asset ecosystem.

user avatarArif Mukhtar

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.