Crypto analyst Jamie Coutts has warned Bitcoin traders to exercise caution in light of the rising strength of the US dollar (DXY), which has reached year-to-date highs. Coutts explained that the macroeconomic environment is unfavorable for Bitcoin, emphasizing a historical negative correlation between the DXY and Bitcoin’s price movements. He urged caution particularly among traders engaging in margin trading, as Bitcoin’s short- to medium-term price momentum is sensitive to shifts in the US dollar’s strength. Despite Bitcoin’s recent increase of nearly 28%, the continuous uptrend of safer assets like the dollar raises alarms for cryptocurrency investors. Coutts highlighted that if the DXY surpasses its current resistance levels, it could adversely affect risk assets, including Bitcoin. However, he maintains a long-term bullish outlook for Bitcoin, suggesting that the bearish backdrop could change with supportive news or actions from the Central Bank of China.

Source 🔗