30s Summary

Crypto analyst Jamie Coutts warns traders to be cautious, as Bitcoin’s value often drops when the US dollar performs well, a pattern observed in the “liquidity framework” chart. The US Dollar Index is currently at 106.7, a significant rise thought to be linked to the Trump administration’s inflationary policies. Bitcoin has risen 28%, but the dollar’s growth could undermine it. Coutts suggests that should the dollar break its current resistance level, riskier investments like Bitcoin could suffer, but positive news from central banks could alleviate the situation.

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With the US dollar hitting the highest points we’ve seen this year, folks have started to worry about whether Bitcoin’s current winning streak can keep on going. So much so, one expert in the crypto world is telling traders to think twice before making any major gambles.

Jamie Coutts, a bigwig crypto analyst at Real Vision, voiced his concerns on a Nov. 14 post, saying the overall environment has taken a turn for the worse. According to him, when the dollar performs well, Bitcoin doesn’t, which isn’t great news for crypto enthusiasts out there.

Looking at the good old “liquidity framework” chart, Jamie showed us how Bitcoin’s price tends to do the opposite of what the USD does. He’s urging traders to keep a lid on risky investments, because Bitcoin’s price is prone to quick changes in momentum. But don’t worry though, it’s not all bad – he still thinks things are looking good for Bitcoin in the long run. That said, he suggests playing it cool for the time being.

Check this out: the US Dollar Index (DXY) is currently at 106.7, which is a 3.18% increase from Nov. 6. In case you missed it, that’s the day after Donald Trump won the US presidential election. There’s been some chatter suggesting that Trump’s victory could be behind the dollar’s rise, because investors are expecting inflation rates to go up thanks to Trump’s pro-tariff policies.

Meanwhile, Bitcoin’s value has climbed almost 28%, but the dollar’s growth is causing some friction for Bitcoin traders. Generally, when one rises, the other falls. Back in July 2022, Bitcoin’s price plunged more than 60% over the year, while at the same time, the dollar boomed and the DXY was around its January 2003 highs of 105.8. All this scared people into thinking a recession was coming.

Jamie’s warning that if DXY goes above its current resistance level, it could spell trouble for riskier investments. But it’s not all doom and gloom. Positive news from the US Federal Reserve or the Central Bank of China might turn things around.

Remember, while keeping up with these developments is crucial, it’s essential to do your own research before making any big trading decisions.