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Stocks slide as dollar hits 4-month highs: Why Bitcoin price is slumping below $50K

Published 03/05/2021, 09:13 AM
Updated 03/06/2021, 02:40 PM
Stocks slide as dollar hits 4-month highs: Why Bitcoin price is slumping below $50K
DX
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BTC/USD
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BTC/USD
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The price of Bitcoin (BTC) is extending its slump below $49,000 on March 5 as the U.S. dollar index (DXY) reached the highest levels since November 2020.

DXY (blue) vs. BTC/USD (orange). Source: Tradingview

Meanwhile, the prospect of rising rates and a potential stock market top is putting downward pressure on equities and Bitcoin, causing the entire cryptocurrency market to pull back.

Bitcoin price trend. Source: Scott Melker, TradingView.com
BTC/USD (blue) vs. S&P500 (orange) YTD performance. Source: Tradingview

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