Bitcoin (BTC) price dropped to an intra-day low at $66,569 on July 22, less than 24 hours before the much-awaited launch of spot Ethereum ETFs in the United States.
The bullish momentum that propelled BTC above $68,000 falls under question as traders struggle to secure a few daily closes above $68,000.
Apart from the impact of US President Joe Biden’s withdrawal from the November presidential race on Bitcoin’s price, the pioneer cryptocurrency is facing yet another issue: a strengthening US dollar.
Let’s take a closer look at the factors impacting Bitcoin price today.
The US dollar starts to recover
The US dollar Index (DXY), a metric tracking the greenback’s performance against top world currencies, has risen 0.7% from its July 17 low of 103.18 to its current value of 103.85 ahead of the Personal Consumption Expenditures (PCE) Index from the United States.
The PCE print, known as the Federal Reserve’s “preferred” inflation measure, is due July 26, a day after second-quarter gross domestic product and rolling unemployment figures. This could potentially provide tailwinds to the DXY and heighten volatility for Bitcoin and other cryptocurrencies at the end of the week.
DXY 1-day chart. Source: TradingView
From a technical perspective, the US dollar Index looks on track to rise by more than 1.8% to complete a classic V-shaped recovery pattern toward 2024 highs above 106.
Bitcoin bulls book profits amid political uncertainty
Biden’s withdrawal and endorsement of Vice President Kamala Harris for the presidency introduced some volatility to markets.
While the Republican presidential candidate, Donald Trump, has incorporated a pro-Bitcoin stance into his election platform, Harris’s stance on cryptocurrencies remains unclear.
Market intelligence firm sentiment noted that the market appears to react with an “immediate small panic drop in crypto prices” to news of Joe Biden’s stepping aside, as it did with the news of the Trump assassination.
“Though wildly different circumstances, the news of the Trump attempted assassination from 2 weeks ago caused a similar price pattern. Throughout the closing hours…..
