Bearish sentiment strengthened on Monday after the People’s Bank of China reiterated its crypto banking ban in the wake of the Chinese government’s crackdown on crypto mining.
Still, prices had bounced back to $32,000 by the day’s end .
“Bitcoin and the dollar index have developed an inverse relationship since the last week’s Federal Reserve meeting,” Mancini said.
The dollar index, which tracks the greenback’s value against major fiat currencies, has risen by 1.43% since the Fed meeting.
Some observers say the Fed taper fears are here to stay and could keep bitcoin’s gains in check.
At a minimum, bitcoin needs to see a break above $41,325 to suggest we’ve bottomed,” Kruger said.
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