Rallying Dollar Predicted to Limit Crypto Growth: Implications for Bitcoin (BTC) and Ethereum (ETH)

  • Crypto prices could be affected by the surge in the United States dollar as experts point to a cap in prices coupled with macro factors.
  • The soaring performance of the US dollar could limit crypto prices.
  • Analysts at QCP also points to decreased spot ETF inflows.

Experts predict that the rising strength of the U.S. Dollar could limit the growth of crypto prices. This article explores the potential impact of macroeconomic factors and decreased spot ETF inflows on the crypto market.

US Dollar Strength Could Cap Crypto Prices

Crypto market experts have flagged the increasing strength of the U.S. Dollar as a limiting factor in digital assets in the wake of plunging sentiments. A new report from QCP Markets shows the impact of crypto prices as the dollar gains momentum. 

Macroeconomic Factors and Crypto Prices

According to the report, inflation and macroeconomic factors may make other Central Banks wait for the Federal Reserve to cut rates before a follow-up. Another reason posted was the divergence between the US and other countries. 

Rate Cuts Could Boost Crypto Prices

Rate cuts could heighten crypto prices as investors will pour funds into risky assets. Last year’s interest rate hikes saw investors move funds out of risky assets impacting market sentiments. 

Low ETF Momentum

Analysts at QCP also pointed to reduced inflows in spot Bitcoin ETFs. The market saw increased flows last Friday but recent events have triggered a pullback from investors. The firm tips topside strategies to provide risk-reward for users. 

Conclusion

The strength of the U.S. Dollar and macroeconomic factors could potentially cap the growth of crypto prices. As the crypto market continues to evolve, it’s crucial for investors to stay informed about these developments and their potential impacts.

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