After surging past the $50,000 mark recently, Bitcoin (BTC) has experienced a drawback and has fallen by 5.56% in the last 24 hours to trade at $47,030 at the time of writing, according to CoinMarketCap.
Crypto analyst Joseph Young trusts that the leading cryptocurrency is treading with caution based on a strengthening dollar, and this could prompt a price consolidation in the short-term. He explained:
“Bitcoin in caution mode as global macro turns risk-off and the dollar rallies. Both the U.S. and Asia stock markets are down big. Expecting more consolidation in the short-term.”
A strengthening dollar is not good news for Bitcoin because the two have an inverse relation, as explained by analysts. For instance, as BTC surged by more than 295% in late 2020, the US Dollar Index (DXY) slipped to a 32-month low.
Moreover, late last month, BTC plunged by more than 20% in just a week as bond yields surged and risk assets experienced a global sell-off. The top cryptocurrency…
