Bitcoin drops as dollar eyes ‘best 5-day run’ in 14 months on expected rate cut hold

As the U.S. dollar strengthens, Bitcoin’s price has declined leading up to its April 20 halving and the Fed’s expected rate cut pause in May.

The United States dollar is eying its “best 5-day run” since February 2023, while Bitcoin (BTC) has dropped over that time as interest rates are expected to remain high and the cryptocurrency sees volatility leading up to its April 20 halving.

The dollar’s strengthening is likely driven by expectations of sustained higher interest rates, according to trading resource The Kobeissi Letter.

“Less than a month ago, markets were anticipating the Fed to start cutting in June. Higher for longer is now the base case,” The Kobeissi Letter wrote in an April 17 X post.

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