Dollar

Bitcoin

Impact

You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/dollars-strength-challenges-bitcoin-growth" data-wpel-link="internal" rel="noopener noreferrer nofollow">Dollar’s Strength Challenges Bitcoin Growth</a> 
Jamie Coutts, the chief strategist at Real Vision, has spotlighted the US dollar’s potential hindrance to <a href="https://en.bitcoinhaber.net/bitcoin-traders-brace-for-election-outcome-effects" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> and digital assets. While maintaining optimism for the long-term trajectory of cryptocurrencies, Coutts warns that the current dollar strength poses immediate risks to Bitcoin’s performance.
<h2 id="how-does-the-dollar-impact-bitcoin">How Does the Dollar Impact Bitcoin?</h2>
Coutts emphasizes that the worsening macroeconomic climate signals that a robust dollar could negatively impact Bitcoin. He attributes this to the sensitivity of liquidity frameworks to short- and medium-term shifts.
<blockquote>
 “The macro backdrop has deteriorated. The strength of the dollar is not good for Bitcoin.” – Jamie Coutts
</blockquote>
He alerts that the dollar index (DXY) is hovering close to the 106 mark, stating that if this level is breached, it would spell trouble for riskier assets.
<blockquote>
 “DXY is just below a resistance level. Crossing this would not be good for risky assets.” – Jamie Coutts
</blockquote>
Coutts sees a significant link between Bitcoin and global liquidity trends. He predicts that, despite potential fluctuations in the short term, the value of Bitcoin is likely to increase within the next one to two years, especially with an uptick in the M2 money supply.
<blockquote>
 “Long-term, I’m at the point for this cycle; a 12-month forecast based on a linear relationship with liquidity.” – Jamie Coutts
</blockquote>
Currently, Bitcoin is trading around $90,050, as market participants keenly observe how the dollar’s robustness may sway the cryptocurrency landscape.
<ul>
 <li>The dollar’s strength poses short-term risks for Bitcoin.</li>
 <li>A breach of the 106 level in the dollar index could affect risky assets negatively.</li>
 <li>Despite current volatility, Bitcoin is expected to rise in the long term.</li>
</ul>
The interplay between the dollar’s performance and Bitcoin’s value remains a critical focus for market observers, with significant implications for the broader cryptocurrency ecosystem.
<h5>Continue Reading: <a href="https://en.bitcoinhaber.net/dollars-strength-challenges-bitcoin-growth" data-wpel-link="internal" rel="noopener noreferrer nofollow">Dollar’s Strength Challenges Bitcoin Growth</a></h5>

Dollar’s Strength Challenges Bitcoin Growth

Table of Contents

BH NEWS

Other articles published on Nov 17, 2024

Chris Burniske Analyzes the Impact of Meme Tokens on the Crypto Market

XRP’s Breakout Momentum, Will It Hit $1 and Challenge All-Time Highs?

$PEPE, $DOGE, $SXP, and More—Top 10 Searched Tokens on CoinGecko

Crypto Markets Anticipate Growth After Elections

Cronos (CRO) Faces Key Resistance, Potential Correction Ahead

DOGE, Bitcoin, and Monsta Mash ($MASH): The Triple Threat Set to Dominate the Crypto Scene in the...

Join our free newsletter for daily crypto updates!