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Crypto Traders Bet on Weakened US Dollar and Bitcoin Rally, Despite Banks' Forecasts

Crypto Traders Bet on Weakened US Dollar and Bitcoin Rally, Despite Banks' Forecasts

CointimeCointime2024/04/24 08:31
By:Cointime

Despite some banks predicting continued strength for the US dollar, crypto traders are optimistic about a weakened dollar and a potential bitcoin rally. The recent decline of the Dollar Index (DXY) has given hope to crypto bulls, who believe that a weaker dollar would encourage risk-taking and extend the bitcoin rally. However, Societe Generale and Scotiabank expect the dollar to remain strong due to divergent interest rate expectations, while Barclays suggests that a potential escalation of the trade war between the US and China could benefit the dollar. If Donald Trump were to impose a 60% tariff rate on Chinese imports, it could potentially increase the value of the dollar, but the impact on foreign exchange rates would depend on the specifics of the proposal, according to Barclays' FX strategy team.

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