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This week, the cryptocurrency market is marked by the strength of the US dollar, reaching its highest level since the bear market of 2022. This situation creates challenges for Bitcoin (BTC) traders, who must navigate an environment of increased volatility as the American presidential inauguration approaches.
The US dollar weakens bitcoin!
As Donald Trump’s inauguration on January 20 approaches, the strength of the US dollar reaches unprecedented heights, creating headwinds for the cryptocurrency market. Indeed, a strong dollar tends to exert a downward pressure on the price of bitcoin! And investors will logically turn to safer assets.
Moreover, the correlation between bitcoin and the US dollar index (DXY) is at its highest level since 2016. Tony “The Bull” Severino emphasizes that risk assets will continue to struggle as long as the dollar remains strong. A downturn in the dollar may then be necessary to see a recovery in the crypto market.
Investors accumulate at $90,000
Despite this strength of the dollar, the buy/sell ratio of Binance shows signs that bitcoin could become a stronger buying option this month. Indeed, the inflows to exchanges are decreasing, with traders choosing to hold their BTC in the $90,000 range.
This new week begins with potential volatility triggers reserved for later for bitcoin. After a peak close to $96,000 at the weekly close, BTC/USD quickly fell back to around $93,000. Traders are closely monitoring the levels of $93,000 and $91,000 for potential liquidations. However, a break below this level could lead to a much larger decline.
In summary, the strength of the US dollar continues to pose challenges for bitcoin, but positive signs are emerging, suggesting a possible stabilization or recovery. Investors will need to carefully monitor key levels and economic data this week to anticipate future market movements.
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Le monde évolue et l’adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m’intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l’optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
