Real Vision’s head crypto analyst Jamie Coutts says that the US dollar is on the verge of foiling the rally for Bitcoin (BTC) and digital assets.

While the long-term bullish structure is still intact, Coutts says that a strong dollar is threatening to derail BTC’s movement in the short term.

“The macro backdrop has soured. Dollar strength is not good for Bitcoin. Ann Funding rates hit 40% 2 days ago. My liquidity framework is sensitive to the short to medium-term changes in momentum. In the long term, the picture is Bullish; in the Short term, they suggest caution.”

Zooming in on the dollar index (DXY), which pits the USD against a basket of other major foreign currencies, Coutts says it’s trading just below a critical resistance level at 106 that wouldn’t bode well for BTC if it breaks.

“DXY is right at the resistance level. A break above here would not be good for risk assets.”

Over the longer term, Coutts believes there is a strong relationship between Bitcoin and global liquidity, or the amount of money sloshing around in the world’s economy. The analyst says that regardless of shorter-term volatility, BTC should continue to run higher over the next year or two along with a rise in M2 money supply.

“Longer term, this is where I am at for this cycle; a 12-month forecast based on linear relationship with liquidity. But Bitcoin cycles are not linear. I think we go much higher than this.”

At time of writing, Bitcoin is trading at $91,350.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DreamStudio

Chinese electric vehicle manufacturer Kaixin is looking for a strategic shift with plans to acquire a controlling stake in a Middle Eastern cryptocurrency mining operation.

The announcement depicts a major jump and diversification from its traditional automotive business.

Kaixin in advanced stages of acquisition

According to Kaixin’s press release, the Beijing-based company is in advanced stages of evaluating the potential acquisition.

The target operation features cost-efficient Bitcoin mining machines and provides comprehensive cloud hosting services to meet growing industry demand.

Kaixing stated that the facility’s key advantage lies in its access to stable, long-term energy supplies. The company stated that this is crucial for maintaining profitable operations.

This energy security aspect appears to be a primary driver behind the strategic choice of location.

Kaixin currently operates as a leading new energy vehicle manufacturer in China. The company maintains professional teams across R&D, production, and marketing.

Unlike many traditional automotive companies, Kaixin’s move into cryptocurrency mining represents a different and bold strategic pivot.

The company aims to use its existing expertise in sustainable operations while expanding into the crypto sector.

Kaixin stated in its press release:

“This acquisition represents our commitment to exploring new growth avenues while maintaining our core automotive excellence.”

However, the exact timeline for when the deal will close remains unclear as the company continues its evaluation process. 

The global crypto market cap has also surged past $3.04 trillion as Bitcoin (BTC) has created new all-time highs in the past few days. Alongside BTC, several other altcoins have exhibited double-digit gains in the last seven days.