Strong dollar a bigger headwind for BTC than selling pressure, says report

Bitcoin is facing significant macroeconomic headwinds from a strong U.S. dollar, which poses a greater challenge than direct selling pressure, according to a report from Swissblock. The report noted that the confirmation of past Bitcoin bear markets has closely coincided with the U.S. Dollar Index (DXY) bottoming out and beginning to rebound. "While a weaker dollar created a favorable environment for BTC, the market mood reversed as the DXY turned bullish," the analysis explained. It added that in a strong-dollar environment, liquidity tends to shrink, accompanied by a rise in selling pressure and risk indicators, worsening conditions for the Bitcoin market. The rallies seen in April and early May were described as only temporary recoveries. "For BTC to sustain a meaningful upward trend, the dollar's strength needs to subside," the report concluded.