Bitcoin vs. US Dollar: How Strong is Macro Support for Crypto Rally
Bitcoin Dollar Correlation: The bullish momentum in the crypto market continued after the Fed raised the interest rate by 25 basis points. Bitcoin (BTC), which had reached $24,000 at one point, was a clear signal of support for the Fed’s decision. It then corrected slightly. The sentiment in the crypto market remains bullish, with most coins seeing huge gains. Altcoins such as Cardano (ADA), Solana (SOL), and Polygon (MATIC), have seen impressive gains of 6% and 12%, respectively, in the last 24 hour.
Also read: Bitcoin Price Holds $24K as Traders See These Three Key Events
The U.S. Dollar Index (DXY), however, is not looking good. Analysts predict that the next support price will be around 90. It is currently at 101.13, which is down by 0.09%. The dollar index has an inverted correlation with the BTC price. It is now down by 0.70% compared to DXY’s range of around five days ago.
Macro Support In Favor Of Bitcoin Rise?
A further drop in DXY could lead to a push for the Bitcoin price. The current range is not far from the May 2022 lows. If DXY falls further below this level, the next support is in range 92.
The dollar is testing its May lows.
If it breaks, keep an eye on the below. Next support step down. pic.twitter.com/O0eDA83fcT
— The Wolf Of All Streets (@scottmelker), February 1, 2023
The Bitcoin (BTC), price, is showing encouraging signs as it continues its January rally. According to CoinGape’s price tracker, BTC is currently at $23,847. This is an increase of 3.21% over the previous 24 hours. The Fed announcement triggered a rally in the S&P 500 Index on Wednesday. The SPY gained 1.05% during the day.
Also read: Whales Move 500K Ethereum(ETH) Ahead of the US Fed Rate Hike. What’s Next?
CoinGape’s first article, Bitcoin Vs. US Dollar: How Strong is Macro Support for Crypto Rally appeared on CoinGape.