๐ฐ Why is BTC still at 83K? The US dollar is so strong it has no competition?
Just the other day I mentioned this, and now there are new developments. When the U.S. Dollar Index surged to a 14-year high, Bitcoin surprisingly didnโt drop muchโinstead it closed around $83,429. So why is that? Has Bitcoin truly decoupled from traditional markets, or is some money taking advantage of the situation to push the price higher?
Why is this news important?
A strong dollar usually means risk assets will fall, but Bitcoinโs performance this time is different. It suggests:
1. Large speculative funds may think the dollar can still rise, so theyโre not willing to buy Bitcoin at elevated levels
2. Bitcoinโs safe-haven appeal has been rediscovered by the marketโespecially after the Fed signaled a slowdown in rate hikes
3. ETF inflows have not yet been fully offset by dollar outflows (though inflows of only about $316M really arenโt that impressive)
Market impact
In the short term, if Bitcoin holds the $83,429 level, it could mean this wave of selling has already been digested. If the U.S. Dollar Index rises another 1% and breaks above 103, this view would be invalidated. In the medium to long term, the negative correlation between Bitcoin and the dollar may weaken, potentially changing market pricing models.
๐ก My take: Before the U.S. Dollar Index breaks 103, 83K is a key defensive level for Bitcoin. If the Fed actually hikes rates by 25 basis points, this view would be invalidated.
This article has no sponsorship from any project, and the author does not hold any of the assets mentioned
$BTC $ETH #BTC #ETH
โ ๏ธ Not investment advice; predictions are for reference only
Just the other day I mentioned this, and now there are new developments. When the U.S. Dollar Index surged to a 14-year high, Bitcoin surprisingly didnโt drop muchโinstead it closed around $83,429. So why is that? Has Bitcoin truly decoupled from traditional markets, or is some money taking advantage of the situation to push the price higher?
Why is this news important?
A strong dollar usually means risk assets will fall, but Bitcoinโs performance this time is different. It suggests:
1. Large speculative funds may think the dollar can still rise, so theyโre not willing to buy Bitcoin at elevated levels
2. Bitcoinโs safe-haven appeal has been rediscovered by the marketโespecially after the Fed signaled a slowdown in rate hikes
3. ETF inflows have not yet been fully offset by dollar outflows (though inflows of only about $316M really arenโt that impressive)
Market impact
In the short term, if Bitcoin holds the $83,429 level, it could mean this wave of selling has already been digested. If the U.S. Dollar Index rises another 1% and breaks above 103, this view would be invalidated. In the medium to long term, the negative correlation between Bitcoin and the dollar may weaken, potentially changing market pricing models.
๐ก My take: Before the U.S. Dollar Index breaks 103, 83K is a key defensive level for Bitcoin. If the Fed actually hikes rates by 25 basis points, this view would be invalidated.
This article has no sponsorship from any project, and the author does not hold any of the assets mentioned
$BTC $ETH #BTC #ETH
โ ๏ธ Not investment advice; predictions are for reference only