Bitcoin price faces additional headwinds as the U.S. Dollar Index gains strength and Grayscale’s GBTC selling continues.
Bitcoin (BTC) traders are reeling from the current sell-off, with the recently launched spot Bitcoin exchange-traded funds (ETFs) failing to produce the desired price upside. In addition to steady Grayscale Bitcoin Trust (GBTC) outflows impacting BTC price, market participants are now facing yet another problem: a strong U.S. dollar.
The U.S. Dollar Index (DXY), which tracks the greenback’s performance against an array of top foreign currencies, has risen 2.71% from its Dec. 27 low of 100.617 amid encouraging United States economic data.
Retail sales, the Philly Fed Manufacturing Index and weekly initial jobless claims all provided tailwinds to the DXY, lifting it to new 2024 highs in the 103.65–103.70 range.
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Source: https://cointelegraph.com/news/bitcoin-price-recovery-at-risk-due-to-dxy-strength-gbtc-selling