This September Btcoin price dipped even below 60,000. The BTC price established an intraday low of around $58,600 on Coinbase. Thus, only to retreat higher to reclaim $60,000 as its psychological support. Its move downside appeared as U.S. President Joe Biden signed the $550 billion infrastructure bill into law, including new tax-reporting requirements for cryptocurrency users.
Meanwhile, the dollar continued its prevailing bull run smoothly as sales at the U.S. retail stores. It rose by 1.7% in October versus 0.4% in the previous month. That provided another evidence — after an excellent Nonfarm Payrolls report last week. That the U.S. economy has been rebounding strongly from the Covid-19 lows.
Bitcoin (BTC) logged its worst daily performance since September as BTC price slid by 10% to under $59,000 on Tuesday. On the other hand, the U.S. dollar jumped to its best level in sixteen months. So after spending across the American retail sector grew despite persistent Covid-19 fears and inflation concerns.
Gains for Dollar
As a result, investors raised their bids on the dollar, anticipating that the Federal Reserve would accelerate the tapering of its $120 billion a month asset purchase program, leading to earlier-than-expected rate hikes, which remained near zero since March 2020.
Future forecasting
Looking at how Btcoin price dipped previously. Analysts anticipated the dollar to continue its growth higher in the coming months ahead, with market analyst Scott Melker predicting DXY to reach 97.50. So it appears, the U.S. dollar index has been breaking out of a similar Double Bottom setup.
Nigel Green, chief executive of DeVere Group, noted that the cryptocurrency may keep on surging in value at least until the second quarter of 2022, citing the U.S. consumer price index’s (CPI) recent climb to its three-decade high. “This latest data out of the U.S. will only compound global fears about inflation as price pressures run hot around the world,” he noted.