Bitcoin Slips Under $42K as Mounting Macro Risks, Dollar Strength Overshadow LFG Purchases

The world’s largest cryptocurrency fell under $42,000 during European trading hours, hitting the lowest level since March 22 and extending the decline from the late March high of $48,240, according to CoinDesk data.

The dollar index , which tracks the greenback’s value against a basket of major currencies, tapped two-year highs above 100 early today, taking the year-to-date gain to 4.3%, according to data provided by charting platform TradingView.

“2017 was one of the worst years for the dollar, and that coincided with a huge run in bitcoin,” Kelly said in an analyst call in March.

That’s true even more so now given the ongoing dollar rally is being fueled by hawkish Federal Reserve officials, calling for a faster pace of interest rate increases and balance sheet runoff to curb rapid inflation.

According to a Reuters poll, the Fed will likely raise rates by 50 basis points during the May and June meetings, having raised borrowing costs by 25 basis points last month.

Big tech is suffering as the liquidity available to allocate to high-growth sectors is dwindling with markets pricing faster tightening by the Fed.

European stock futures dropped early today after polls showed French President Emmanuel Macron and nationalist rival Le Pen were the top two vote-getters in Sunday’s first round, with 27% and 24%, respectively.

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