Crypto Traders Eye Potential Impact on Bitcoin

Crypto traders are watching the US dollar, predicting its potential weakening may support Bitcoin and other cryptocurrencies. While some banks expect the dollar to maintain its strength, recent data suggests possible changes. Bitcoin has oscillated between $60,000 and $70,000 since mid-March, with its rally stalling due to stagnant Federal Reserve rate cut expectations and a strengthening dollar index (DXY).

A Declining DXY could propel Bitcoin towards more gains beyond the 70K. While institutions like Societe Generale and Scotiabank expect a robust dollar, projecting the DXY could peak between 107 and 110, influenced by steady Fed rates and economic policies that can limit Bitcoin profits.

Moreover, geopolitical developments, such as US-China trade tensions, could impact the dollar. Proposed tariffs on Chinese imports might support the dollar's strength. These factors combined make the financial landscape for cryptocurrencies and the dollar increasingly complex and interconnected.