Stronger Dollar Could Stall Bitcoin’s $100,000 Surge, Experts Warn

As Bitcoin nears the $100,000 mark, analysts caution that a stronger U.S. dollar could limit its growth.

André Dragosch, Head of European Research at Bitwise, highlighted that Bitcoin has historically struggled during periods of dollar strength, which signals tighter global liquidity. The U.S. Dollar Index has recently risen, and Bitwise’s models now indicate that the dollar is the key factor affecting Bitcoin’s performance.

Additionally, the U.S. Federal Reserve’s monetary policy is supporting the dollar, reducing expectations of rate cuts in 2024.

This creates an environment less favorable for Bitcoin, which thrives in more liquid conditions. Global developments, like potential interest rate hikes by the Bank of Japan, could further pressure Bitcoin by unwinding the yen carry trade.

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With inflation in Japan rising and the BOJ signaling tighter policy, the global tightening trend could make Bitcoin’s climb to $100,000 more challenging in the short term. Analysts suggest that while Bitcoin remains resilient, its performance in the near term will depend on how central banks globally manage liquidity.

If the dollar strengthens further and other global central banks follow suit, Bitcoin’s path to new highs could be delayed as investors shift towards more traditional assets that are perceived as safer in a tightening environment.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.