The strength of the dollar is weighing on Bitcoin’s price. However, international experts believe that the rise of the cryptocurrency price is only a matter of time.

Bitcoin price has plunged 20% this week, the biggest drop since March 2020. According to Coindesk data, the world’s most popular cryptocurrency is currently trading at around $ 46,800 / dong, down 6.47% from a day earlier.

The falling momentum narrowed Bitcoin’s market cap to $ 872.34 billion. In addition to Bitcoin, the prices of other cryptocurrencies like Ether, XRP and Stellar also plummeted.

According to experts, rising bond yields and a recovery of the dollar are weighing on Bitcoin’s rally. However, some believe that it is only a matter of time before it rebounds.

Bitcoin has skyrocketed in price over the past 12 months. Part of the reason is the economic stimulus packages around the world and the US Federal Reserve (FED) is committed to maintaining low interest rates in the long run. This is a strong support for Bitcoin – which is considered an asset immune to inflation and the risk of currency devaluation.

In addition, the lower the real interest rate, the lower the opportunity cost of holding “digital gold”.

“Risk assets are being affected at this time. We are seeing stocks slide and cryptocurrencies follow, ”commented Vijay Ayyar, Head of Asia-Pacific at Luno (Singapore), commented.

“The dollar is getting stronger. It is a sign that Bitcoin and other cryptocurrencies will slide, ”he added.

Bitcoin is also under pressure from negative comments from major investors and regulators. In an interview with Bloomberg recently, billionaire Bill Gates affirmed that Bitcoin is not something that retail investors should buy.

In addition, Bitcoin also has a negative impact on the environment because mining consumes a lot of energy. “Elon has a lot of money and is sophisticated, so I don’t worry about the Bitcoin he holds going up or down,” Bill Gates said.

“But investors who are rushing to buy may not have much money. Therefore, I am not optimistic about Bitcoin. In my opinion, if you have less money than Elon, be wary, ”said the Microsoft founder.

At the New York Times DealBook conference, US Treasury Secretary Janet Yellen also emphasized that “Bitcoin should not be widely used as a transaction mechanism”. According to her, Bitcoin is highly speculative, volatile, risky for investors and often used for illegal financial purposes.