According to market experts, with a recovery on the dollar side, a decrease in the bitcoin price can be observed. Will the strengthening of the dollar according to the DXY index collapse like a black cloud on the crypto money industry?
After ONS Gold, Bitcoin was added to the caravan of those affected by the dollar’s recent upward movement. Max Keiser, one of the leading names in the cryptocurrency world, emphasized the negative correlation between Bitcoin and the dollar, and mentioned that BTC acts in harmony with gold.
Bitcoin and gold, which generally show an inverse fit with the dollar, can take bigger blows as the dollar continues to rise. According to Stack COO Mathew Dibb, the Bitcoin price may retreat just like precious metals in light of the strengthening of the dollar. Dibb predicts that with Bitcoin falling below the $ 10,000 band, it could drop to $ 8,800.
The Share of the Dollar Index in Bitcoin’s Movements is Large
Bitcoin is trading at $ 10,405, down 5% in the last 7 days. The DXY index, which shows the value of the dollar against foreign exchange, broke the 92.00 – 94.00 level, which it has been in for two months. Experts pointed to the $ 10K level, a key support zone for Bitcoin in a bearish scenario where DXY continues to rise.
The reverse correlation between Bitcoin and DXY has been observed more clearly since March with the pandemic period, and it became more evident in July. DXY broke through its 2-month recession on Wednesday and is now sailing around 94.40. Darius Sit, CEO of Singapore-based QCP Capital, announced that they expect the dollar, which has eased since March with Fed policies, to rise in the coming days.