A Crypto Analyst Believes Bitcoin Could Reach New All-Time Highs with a Weakening Dollar
A well-known crypto analyst, Jamie Coutts, suggests that Bitcoin (BTC) has the potential to surge to new all-time highs (ATHs) if the U.S. Dollar Index (DXY) starts to decline. In a recent strategy session, Coutts explains on social media platform X that if the DXY breaks 99.5-101 and experiences little support until the low 90s, BTC would likely reach new ATHs. Currently, the DXY is at 103.1, showing a 0.4% decrease in the last day.
Bitcoin’s Vulnerability to Mid-Cycle Overheating
Coutts also points out that Bitcoin is susceptible to “mid-cycle overheating,” which occurred in its previous two cycles. However, he expects this pullback to be brief and shallow, similar to 2016, rather than a more severe correction like that of March 2020.
Bitcoin’s Current Price
As of now, Bitcoin is trading at $40,800, reflecting a 2.1% increase in the last 24 hours.
Hot Take: A Weaker Dollar Could Boost Bitcoin to New Heights
Crypto analyst Jamie Coutts believes that if the U.S. Dollar Index (DXY) weakens and drops below key levels, Bitcoin could skyrocket to new all-time highs (ATHs). This correlation between BTC and the DXY suggests that as the dollar loses strength, Bitcoin gains momentum. Coutts also notes that although Bitcoin is vulnerable to mid-cycle overheating, this time around, he expects a shorter and shallower correction similar to 2016 rather than a drastic downturn like in March 2020. With Bitcoin currently trading at $40,800, the prospect of a weakening dollar may pave the way for new ATHs in the future.
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