Dollar Index on verge of major breakout as bitcoin slips

Bitcoin (BTC $63,927.03) is under pressure for a third straight day, trading near $63,900 and down nearly 1% since midnight UTC. The broader market shows similar losses, with a few exceptions—HASH, XLM and ENA each gained 7% or more. The Dollar Index has gained 0.26% to 100.66, extending Wednesday’s 0.8% rise, and is on the verge of firmly breaking out of a 13-month trading range.

Such a breakout often spurs momentum chasing, which would likely add to the greenback’s gains and weigh on dollar-denominated assets like bitcoin. Bitcoin’s 90-day correlation coefficient with the DXY was recently minus 0.82. The greenback appears to be benefiting from the Fed’s hawkish tone, which has raised concerns that interest rates may rise in the U.S.

If the DXY continues to gain ground, BTC is likely to remain under pressure and could revisit the pivotal 200-week simple moving average at $62,258.

United States

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