Bitcoin Breaks Down: Dollar Strength Outpaces Crypto Rally

Bitcoin has been struggling against a strong dollar since May, according to Glassnode. The firm's analysis shows that periods of dollar strength have often coincided with Bitcoin gains, but this time around it's different. Since 2015, the correlation between the two assets has held up, with Bitcoin rising alongside a strengthening dollar.

However, in recent times, Bitcoin has been underperforming during these periods of dollar strength. Glassnode suggests that if the correlation reverses and Bitcoin regains its relative strength despite continued dollar strength, it could be a positive sign for the market.