The U.S. dollar has been gaining ground in recent days, and this could be contributing to Bitcoin's woes.
Bitcoin has suffered an unpleasant dip into the red so far this week — reaching depths of $53,470.69 on Tuesday.
One contributing factor to the cryptocurrency’s recent decline might be the U.S. dollar, which has been strengthening against other major world currencies.
The fall also puts BTC at odds with tech stocks including Amazon, Microsoft and Tesla — all of whom were in positive territory in intraday trading.
Crypto analysts with long memories have claimed that Bitcoin’s current pattern is not dissimilar to those seen following past halvings. They argue that corrections along the way are perfectly healthy, and necessary so levels of support can be established. After all, no asset can continually go up in one straight line.
Bitcoin Criticism Builds
On the fundamental side of things, BTC has been rocked by a slew of criticism in recent days.
Bank of America has warned that the energy consumed by the digital asset is now greater than American Airlines typically uses in a single year.
Meanwhile, Federal Reserve chairman Jerome Powell stressed that Bitcoin is highly volatile and unsuitable to be used as cash.
And Norway, which has cemented its reputation as being one of the world’s most cashless societies, appears to be snubbing the cryptocurrency too — with its central bank’s governor telling Bloomberg that BTC is “far too resource intensive and far too costly” to be relied upon as an alternative.
In other developments, crypto entrepreneur Bobby Lee has told CNBC that he believes BTC could surge as high as $300,000 in the current cycle — but added that it could fall by up to 80% or 90% afterwards, in a crypto winter that would last for several years.
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