Crypto analyst Jamie Coutts cautioned traders to “be careful” when margin trading Bitcoin, given the growing strength of the US dollar.
The United States dollar rising to year-to-date highs has raised concerns about the sustainability of the current Bitcoin bull run, with a crypto analyst warning traders to be cautious about making overly speculative bets.
“The macro backdrop has soured. Dollar strength is not good for Bitcoin,” Real Vision chief crypto analyst Jamie Coutts said in a Nov. 14 X post.
Coutts pointed to his “liquidity framework” chart — which illustrates a historical negative correlation between USD and Bitcoin’s (BTC) price — to suggest that Bitcoin’s price is “sensitive to short- to medium-term momentum shifts,” while cautioning traders to “be careful with leverage.”
