Bitcoin has dropped by 3.15% to $41,239 in the past day and 10.67% in the last seven days due to macro factors, including global economic and political risks as the USD strengthens.
BTCUSD is down -2.16%
The drop in Bitcoin has coincided with 4.3% gains in the dollar index to a two-year high of more than 100, affirming an inverse relation with the digital asset. The same played out in 2017’s BTC bull run.
The plunge in the primary cryptocurrency happens despite additional 4,000 BTC tokens by Luna Foundation Guard worth $173 million to boost Terra’s UST stablecoin reserves.
Genesis Global’s head of market insights, Noelle Acheson, says that bearish pressure is attributed to the conventional investors failing to follow the steps of LFG due to the economic and political risk factors.
The dollar surge is reportedly also attributed to the anticipated Federal Reserve policies trying to hike the interest rates and cut balance sheet spending.