Analysts are still cautious about saying that BTC is finally going to break up the wall of 40K again since it could be a bull trap for them.
Unfortunately, what we have seen is that when the Dollar is getting stronger all assets are usually going down.
Now BTC seems to have a light correlation with Nasdaq, probably mainly due to the fact that it is held by many Tech Giants as value reserve.
Other Analysts on twitter said that the “dump after this bounce is over is gonna be brutal”. Justifying that due to the fact that every upward movement of Bitcoin seems stopped from a Bearish reaction.
The evaluation of Bitcoin is highly affected by the DXY which is reaching levels out of any imagination. Thus, if the great majority of the assets is affected from a reduction in price, also fiscal revenues are reduced which means that will be issued additional Treasury Certificates.
And as a chain, if nobody outside the US country is buying those certificates they should be bought from the American Central Bank (Federal Reserve).
On the other hand if the private corporations or individuals are feeling safer Treasury Bond rather than companies nobody buys stocks or BTC… which means that all the market is going down in a non-stop cycle.
This sentiment of fear is also presented and reflected from the “Crypto Fear & Greed Index” which reached the lowest level since april.
Its actual value is 21/100 which means “Extreme Fear”.
The same reaction is followed by the “Normal” Fear & Greed Index related to stocks, which is now at 32/100 meaning “Fear”.
An exciting news about Bitcoin is the adoption from the Central African Republic stating that Bitcoin is now an official currency.
At press time BTC/USD is up by 1.14% trading at 39,696.60€.