The price of bitcoin is expected to be under pressure by April, analysts warned a strong US dollar and transferred the dynamics of the market affecting its trajectory.
According to a new matrixport, the price of bitcoin (BTC) can remain under improvement till April. AnalysisWhich connects the drop to global liquidity and macro factors, which includes a strong US dollar, which puts pressure on cryptocurrency.
https://twitter.com/matrixport_en/status/18953984060605237550/
Spot bitcoin exchange-traded funds have seen massive flow, which has reached $ 39 billion in just 14 months. However, as Wall Street has adopted bitcoin, the largest cryptocurrency by market capitalization is more tied to traditional financial factors, saying analysts.
“A strong US dollar causes this liquidity to fall, which suggests pressure down on bitcoin prices. The late December 2024 was operated by a US dollar by global liquidity Peking, a clear explanation for the ongoing improvement of bitcoin. ,
Matrixport.
With Bitcoin being excessively tied to traditional finance, analysts now expect a recession of at least March or April. After improvement, bitcoin can try to bounce back to the previous heights, they add.
Matrixport Wall Street also notes the growing role of investors. While wealth and asset managers see bitcoins as a long -term investment, hedge funds are using arbitration strategies to benefit from bitcoin volatility. According to the matrixport, these hedge funds “collectively organize $ 10 billion in bitcoin ETFs, and with a total flow of $ 39 billion, it suggests that at least 25% bitcoin ETF is associated with capital arbitration trades.”
