Rising Dollar Strength and Its Potential Impact on Bitcoin | June 23, 2023

The US Dollar Index is grappling with sustaining its recovery from key short-term support levels, retreating to $102.38 in early Asian trading hours this morning. This activity scales back its first weekly gain in four weeks amid fluctuating influences from the US Federal Reserve and Treasury Department. Despite these dynamics, the current risk-averse market sentiment provides some support for the US Dollar ahead of the initial US S&P Global PMI data for June. It's crucial to note that this strengthening dollar could adversely affect #Bitcoin, as BTC has historically moved inversely to the #DXY. A significant bullish impulse has caused the DXY to break out from the bearish parallel channel, and despite some correction due, the overall direction appears upward.

Recent cautious comments from Federal Reserve Bank of Richmond's President Thomas Barkin and US Treasury Secretary Janet Yellen have stirred DXY bulls amidst this stagnant session. Federal Reserve Chairman Jerome Powell's reiterated stance on additional rate hikes this year has spurred a new intraday high for the US Dollar, further boosting its strength. This robust dollar trend, despite potential minor corrections, could likely put pressure on Bitcoin prices. Looking forward, the markets may remain subdued due to China's public holiday and anticipatory caution preceding the US PMIs for June. #DXY #PMI #News #MarketUpdate