Bitcoin’s price dipped below $65,000 on Thursday as the U.S. dollar surged following a surprise interest rate cut by the Swiss central bank. Despite this, some altcoins like XRP, FIL, and ICP managed to defy the market trend, while others like SOL and AVAX experienced declines.
The leading cryptocurrency, BTC, experienced a 5% drop to $64,600 from its earlier position above $68,000 at the start of the day. This decline also impacted the broader market, with the CoinDesk 20 Index (CD20) falling 3.5% from its daily peak. Notably, XRP, FIL, and ICP saw gains of 6%-7% within the 24-hour period, showcasing resilience in the face of Bitcoin’s correction.
The resurgence of the U.S. dollar, prompted by the Swiss central bank’s interest rate cut, played a significant role in Bitcoin’s price movement. This unexpected move erased the gains seen after the dovish tone set by Federal Reserve Chair Jerome Powell. The U.S. dollar index (DXY) rose, impacting asset prices across the board, including cryptocurrencies.
Swissblock analyst Henrik Zeberg noted that Bitcoin had completed its correction phase and is now targeting “much higher levels” in the upcoming uptrend
Despite the short-term price volatility, analysts remain optimistic about Bitcoin’s trajectory. Swissblock analyst Henrik Zeberg noted that BTC had completed its correction phase and is now targeting “much higher levels” in the upcoming uptrend. Zeberg also predicted that altcoins and bitcoin miners would see significant gains in this next phase.
Crypto trader Jelle echoed this sentiment, suggesting that the correction for Bitcoin is over as long as it maintains the $65,000 level. Jelle also mentioned the potential for consolidation at the current price range before BTC can break above $69,000 to reignite its rally to new highs.
While BTC faced a temporary setback below $65,000 amidst a stronger U.S. dollar, the overall sentiment remains positive. Analysts foresee a consolidation phase before BTC resumes its uptrend, potentially reaching new all-time highs. Altcoins like XRP, FIL, and ICP have shown strength in the face of market fluctuations, indicating a broader resilience in the cryptocurrency market. As the market continues to evolve, investors are closely monitoring Bitcoin’s movements and its impact on the broader crypto ecosystem.
