David Edwards
It looks like there’s a contrasting trend between the U.S. Dollar and Bitcoin right now. While the dollar is set for its eighth week of gains, Bitcoin seems to be struggling, based on the latest data.
A Bloomberg report highlights that the dollar is seeing its most robust growth streak since 2005. This surge is primarily driven by significant progress in the service sectors, which have outdone the goods sector by a 2.5-point margin over the last six months and fourfold in the last decade.
On the flip side, Bitcoin isn’t doing so well. It’s currently trading at $25,734.32, having dropped about 0.53% in the last 24 hours. Unlike the dollar, Bitcoin’s performance over the past week has been quite volatile, dropping nearly 8% at the time of reporting.
As the dollar continues to strengthen, it’s likely that more cautious investors will look toward dollar-based assets. This shift might explain why funds seem to be moving away from Bitcoin, as evidenced by its declining trading volume this month.
