Dollar's sharp recovery puts Bitcoin's $25K breakout prospects at risk
Persistent inflation and a strong labor market create conditions for more Fed rate hikes in 2023, which may push down Bitcoin against the U.S. dollar. Bitcoin (BTC) investors reeling from the shock of recent cryptocurrency company failures and banking issues may face another potential problem: a recovering U.S. dollar. US dollar strength reemerges Notably, the U.S. dollar index (DXY), which tracks the greenback's performance against a basket of top foreign currencies, has risen 4% from its Feb. 3 low of 100.82, amid anticipations that the Federal Reserve will continue raising benchmark rates to cool inflation. Inflation ersists An air of caution remains as fresh U.S. data shows a recession is not yet imminent. That includes the latest jobless claims, which fell 2,000 to a seasonally adjusted 190,000 in the week ending Feb. 25, and stronger consumer spending in January. Meanwhile, 90% of the U.S. manufacturers surveyed by Bloomberg complained about rising input prices despite the ...