MEXCExperts Tip Rallying Dollar to Cap Crypto Prices
Highlights
- The soaring performance of the US dollar could limit crypto prices.
- Analysts at QCP also points to decreased spot ETF inflows.
- QCP tips topside trade strategies for risk-reward.
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.
“The US Dollar is inching higher again, placing a cap on risk assets including crypto. The Swedish Riksbank cut interest rates from 4.00% to 3.75%. This follows the Swiss National Bank (SNB) which cut earlier in March and the ECB is also expected to cut in June.”
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.
Macroeconomic Factors To Affect Crypto Prices
Per the report, certain factors will affect an uphill market run as crypto prices drop in recent weeks. Institutional investors and big banks continue to speculate two rate cuts this year with the first coming as early September. At the moment, the Federal Reserve continues to leave interest rates unchanged citing the need to put inflation in check.
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.
At press time, BTC trades at $61,253, a 2% decline in the last 24 hours. This plunge is seen in wider crypto prices as Ethereum, Solana, Ripple, and Dogecoin all post low prices.
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.
Bitcoin ETFs dominated industry narratives in Q1 with the asset price soaring to a new all-time high.
Also Read: Ripple & XRPL Labs Join Swirlds Labs & Algorand Foundation As Founding Members Of DeRec Alliance
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Related Articles
- Polymarket Traders Slash Trump Tariff Odds by 29% After Justices Question Legality, Bitcoin Jumps
- Breaking: Ripple, Mastercard, Gemini Partner to Enable RLUSD Stablecoin Settlement for Fiat Cards
- White House Defends Trump’s Pardon of Binance Founder CZ Amid Corruption Allegations
- Ripple Secures $500M Funding Led by Fortress and Citadel Securities After Record Growth
- Teucrium ETFs CEO Says Late November Will Be ‘Big’ For XRP At Swell 2025
- Solana Price Faces Heavy Sell Pressure as $1.36B Is Liquidated: $100 Incoming?
- XRP Price Prediction: Ripple Swell 2025, ETF Hints, RLUSD Plans, and Market Outlook
- Expert Predicts Cardano Price Surge as Hoskinson Touts Midnight Potential
- Changpeng Zhao Sparks Bull Run Aster Price Jumps 10%, Eyes $2 Breakout
- Whales Scoop 323,523 ETH Amid Price Dip – Is Ethereum Price Correction Setting Up a 10K Wave?
- How Solana, XRP, and Cardano Reacting as U.S. Shutdown Becomes Longest in History
