A strengthening U.S. Dollar may attract investors to safer assets like bonds, pushing down risky assets like Bitcoin. Analysts observe that the historical correlation between the dollar’s strength and Bitcoin peaks has weakened as institutions play a larger role in the crypto market.
Market sentiment among Bitcoin traders reflects a divide, with traditional investors selling while institutions accumulate Bitcoin aggressively. Forecasts suggest that Bitcoin could face a 15% to 25% correction if the dollar rises. However, the outlook remains moderately bullish for the end of the year.
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