Bitcoin drops as dollar eyes ‘best 5-day run’ in 14 months on expected rate cut hold.
The United States dollar is eying its “best 5-day run” since February 2023, while Bitcoin
BTC tickers down $63,559 has dropped over that time as interest rates are expected to remain high and the cryptocurrency sees volatility leading up to its April 20 halving.
The dollar’s strengthening is likely driven by expectations of sustained higher interest rates, according to trading resource The Kobeissi Letter.
“Less than a month ago, markets were anticipating the Fed to start cutting in June. Higher for longer is now the base case,” The Kobeissi Letter wrote in an April 17 X post.
Higher interest rates typically encourage foreign investors to take advantage of greater returns on bonds and term deposits, increasing the demand for the dollar.
The Bloomberg Dollar Spot Index (BBDXY) — which tracks the performance of a basket of 10 leading global currencies versus the U.S. dollar — has climbed by approximately 2% over the last 5 trading days, its largest increase in 14 months.
👇👇
FOLLOW #Henrybackup
