Bitcoin price faces additional headwinds as the U.S. Dollar Index gains strength and Grayscale’s GBTC selling continues.
Bitcoin traders are reeling from the current (BTC) price sell-off as the recently launched spot Bitcoin ETFs failed to produce the desired price upside. Aside from the steady 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 U.S. economic data.
Retail Sales, the Philly Fed Manufacturing Index, and weekly Initial Jobless Claims, all provided tailwinds to the USD Index, lifting it to new 2024 highs in the 103.65-103.70 range.
