Analyst says strong DXY no good for Bitcoin price, urges leverage traders to be ‘careful’
Analysis
Price Impact
MedA strong us dollar historically has a negative correlation with bitcoin's price. the analyst warns about the current dxy rise, suggesting it might negatively impact bitcoin's price.
Trustworthiness
MedThe analyst is a respected figure in the crypto space. his comments are based on historical trends and current market conditions. however, there are other factors at play, and his predictions might not be entirely accurate.
Price Direction
BearishThe analyst predicts that the current strength of the us dollar might negatively impact bitcoin's price. he also advises caution with leverage trading due to the potential for rapid price swings.
Time Effect
ShortThe analyst's concerns are focused on the short to medium-term. the long-term outlook for bitcoin remains bullish, but the current usd strength might dampen the bullish sentiment in the near term.
Original Article:
Article Content:
Ciaran Lyons 34 seconds ago Analyst says strong DXY no good for Bitcoin price, urges leverage traders to be ‘careful’ Crypto analyst Jamie Coutts cautioned traders to "be careful" when margin trading Bitcoin, given the growing strength of the US dollar. 2 Total views Markets News COINTELEGRAPH IN YOUR SOCIAL FEED Follow our Subscribe on The United States dollar rising to year-to-date highs has raised concerns about the sustainability of the current Bitcoin bull run, with a crypto analyst warning traders to be cautious about making overly speculative bets. “The macro backdrop has soured. Dollar strength is not good for Bitcoin,” Real Vision chief crypto analyst Jamie Coutts said in a Nov. 14 X post . Bitcoiners should be wary of leverage amid USD highs Coutts pointed to his “liquidity framework” chart — which illustrates a historical negative correlation between USD and Bitcoin’s ( BTC ) price — to suggest that Bitcoin’s price is “sensitive to short- to medium-term momentum shifts,” while cautioning traders to “be careful with leverage.” Source: Jamie Coutts Coutts said that the long-term outlook is “bullish,” though the chart signals “caution” in the short term. According to TradingView data , the US Dollar Index (DXY) — which tracks its strength against a basket of major currencies — is 106.7, up 3.18% since Nov. 6, the day after Donald Trump won the US presidential election . Several recent reports have pointed to Trump’s victory as a significant factor behind the strengthening dollar, with “speculation that T-note yields will increase as inflation increases” due to Trump’s pro-tariff policies. USD uptrend a worry for BTC investors Over the same period, Bitcoin’s price has risen by almost 28%. Still, the uptrend in safer assets like the dollar raises concern for Bitcoin traders , as there has historically been an inverse relationship between the two. Related: Hitting and holding $100K Bitcoin price depends on $11.8B end-of-year BTC options expiry In July 2022, Cointelegraph reported that Bitcoin dropped more than 60% on the year, while the dollar had surged, with the DXY hovering around its January 2003 highs of 105.8, amid recession fears Coutts warned that “DXY is right at the resistance level. A break above here would not be good for risk assets.” Source: Jamie Coutts Still, he said that “this somewhat bearish backdrop” could be reversed by positive announcements from the US Federal Reserve or the Central Bank of the People’s Republic of China (PBoC). Magazine: Off The Grid’s success shows ‘invisible’ blockchain is the winning play This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. # Bitcoin # Cryptocurrencies # Dollar # Bitcoin Price # Markets # Inflation # Donald Trump # US Elections 2024 Add reaction