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

US Treasury Department Moves to Cut MEXC Global from Financial System

The US Treasury Department has taken action against MEXC Global, a cryptocurrency exchange, to sever its ties with the American financial system due to accusations of facilitating over $16 billion in illicit transactions linked to Iran, North Korea, and Russia.

user avatarLucas Weissmann

Political Fallout from Ueno Bank Crisis in Paraguay

The Ueno Bank crisis has triggered significant political repercussions in Paraguay, including the resignation of President Santiago Peña and potential impeachment proceedings.

user avatarFilippo Romano

Greece Enhances Crypto Tax Transparency Measures

Greece will implement new reporting and documentation requirements for cryptocurrency purchases starting in 2027 to ensure funds come from declared income or lawful sources.

user avatarTomas Novak

Greece Introduces 10% Tax on Crypto Investment Profits

Greece introduces a 10% tax on individual crypto investment gains starting January 1, 2027.

user avatarEmily Carter

Gnosis Pay Implements Enhanced Security Measures Following Breach

Gnosis Pay has implemented enhanced security measures, including 3D Secure for online payments and increased fraud monitoring, following a data breach.

user avatarMaya Lundqvist

Gnosis Pay Reports Data Breach Affecting Customer Information

Gnosis Pay reported a data breach where hackers accessed customer information through its card system, prompting immediate containment measures.

user avatarKaterina Papadopoulou

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.