Bitcoin falls as dollar index rises, showing sensitivity to macro factors

An analysis suggests that Bitcoin is reacting sensitively to macroeconomic influences, as its price has fallen in response to a rise in the U.S. Dollar Index (DXY). According to Jamie Coutts, a crypto market analyst at Real Vision, the rebound in the DXY is contracting global liquidity. He noted that after a significant drop in the first half of the year, the index is retesting a key resistance and retracement zone between 100 and 101. This has placed downward pressure on the price of BTC. Coutts added that the rebound was somewhat anticipated due to an excessive number of short positions on the index. The key question now is whether this is the start of a long-term bull cycle for the dollar or merely a temporary bounce. Coutts explained that his fundamental outlook is for the rally in risk assets to continue until the middle of next year, supported by sustained liquidity and a positive economic cycle.