The price of Bitcoin (BTC) is extending its slump below $49,000 on March 5 as the U.S. dollar index (DXY) reached the highest levels since November 2020.
DXY (blue) vs. BTC/USD (orange). Source: Tradingview
Meanwhile, the prospect of rising rates and a potential stock market top is putting downward pressure on equities and Bitcoin, causing the entire cryptocurrency market to pull back.
Rising treasury yields — the biggest threat to Bitcoin?
Bitcoin and risk-on assets, in general, have been heavily affected by rising 10-year treasury yield rates in the U.S. As a result, the global macro landscape has worsened.
Kyle Davies, the CEO at Three Arrows Capital, said:
“I don’t care about your rate view but if rates stay unch, we’re all gonna be retired if rates go higher, we’re all gonna be back in school.”
The U.S. stock market, particularly the S&P500 index, has already erased all of its gains from 2021, according to Bloomberg.
If the risk-on market continues to correct or consolidate, it would likely have a negative effect on the price ofTitle: Stocks slide as dollar hits 4-month highs: Why Bitcoin price is slumping below $50K
Sourced From: cointelegraph.com/news/stocks-slide-as-dollar-hits-4-month-highs-why-bitcoin-price-is-slumping-below-50k
Published Date: Fri, 05 Mar 2021 14:13:01 +0000