Crypto Markets Stall as Dollar Hits 18-Month High
Major cryptocurrencies like Bitcoin, Ethereum, XRP, and Dogecoin traded sideways on Monday as the U.S. dollar climbed to an 18-month high. The stronger dollar typically pressures risk assets, but Bitcoin has held above its 50-week moving average while gold weakened below its own. Analyst Michael Howell noted Bitcoin’s resilience near $85,585 is notable given the dollar’s strength. He emphasized the need to differentiate between short-term liquidity cycles and the longer-term trend of global debt monetization, which could benefit Bitcoin as a hedge against monetary inflation.
Data from Coinglass showed 65,022 traders were liquidated in the past 24 hours, totaling $240.54 million. Meanwhile, SoSoValue reported net inflows of $189.8 million into spot Bitcoin ETFs on Friday, while spot Ethereum ETFs saw outflows of $37.4 million. Among individual cryptocurrencies, Cardano surged 11%, while Bitcoin and Ethereum remained relatively flat. Other notable gainers included Lighter and OKB.
Howell argued that Bitcoin is one of the most liquidity-sensitive assets globally, often responding more aggressively than gold when liquidity expands. He cautioned that risk assets may be near a cyclical peak, with potential corrections ahead before the long-term bullish trend resumes. Despite the near-term correction risk, he maintained a structurally bullish outlook for Bitcoin.