"Investors are now too lazy to hope for anything, let's see where BTC is going."
The price hike for Bitcoin (BTC) is heavily dependent on the negative correlation of the US Dollar Index (DXY) following the cryptocurrency's successful surge when the Federal Reserve (Fed) intends to stop raising interest rates for September 2023.
Reportedly, the negative correlation between BTC and DXY that increased in December last year has caused the digital asset to bounce back in 2023, where its price surged 95% to reach $30,000.
Not only that, the increase in the price of BTC including stocks also happened when the Fed acted to print money in 2020 to prevent recession, influx of liquidity and so on, but the crypto market is now again exposed to a fall following the decrease in liquidity.
Plus there are many signs that the US may face a recession in the future as the broader financial market nears the end of the Fed's most significant rate hike cycle.
So here it can be seen that the global economy is capable of experiencing a subsequent recession, there are clear indications that the whole of Europe has faced the situation while the growth of China and the US is declining.
As such, BTC must break through the $30,000 resistance zone before the end of 2023 if it wants to continue its upward momentum, but if the price is still below that level then it is capable of a drastic decline.
As of this writing, the price of BTC has jumped by 1.70% to $27,735 in the last 24 hours with a market cap of $540 billion and is up 5.01% over the last week.
