Bitcoin Price Affected by US Dollar Index Rebound Says Analyst
Bitcoin's recent decline is attributed to the strengthening US Dollar Index (DXY), impacting global liquidity and risk assets, according to Jamie Coutts of Real Vision.
Main Points
- The dollar's rebound tightens global liquidity, affecting Bitcoin (BTC).
- DXY is testing the 100–101 resistance zone after a significant drop in early 2025.
- Speculative positioning turned against the dollar, indicating potential for a counter-trend bounce.
- A firmer dollar reduces global liquidity, negatively impacting risk assets like cryptocurrencies.
- If DXY resumes its decline, liquidity conditions could improve, benefiting high-beta assets.
- Coutts suggests BTC's current dip is a result of FX mean reversion, not fundamental crypto issues.
Current Situation
- Bitcoin is trading at $121,703.
- The key pivot point is DXY's movement around the 100–101 level.
