The value of bitcoin declined sharply this past week, as the US dollar continued to assert its dominance following a string of stronger than expected economic data reports.
The BTC/USD exchange rate rose 0.6% to $654.98 on Saturday, according to CoinDesk. Compared to the previous five days, the BTC/USD is down around 4%.
Support for the US dollar rose sharply this week as investors reacted positively to multiple data reports that pointed to a stronger US recovery. The dollar index, which tracks the performance of the US currency against a basket of six peers that includes the euro, yen, pound, franc, Canadian dollar and Swedish krona, rose nearly 1% over the previous five days to close at 97.47. That was the highest settlement since early March.
Bitcoin’s value has wavered after a highly anticipated halving event lowered miners’ incentive to mine new coins. Beginning on July 9, miners receive 12.5 bitcoins for every new block they create. They received 25 coins previously.
Despite the recent decline, the cryptocurrency has gained over 50% since the start of the year, thanks to a huge rally in June.
Source: Yahoo! Finance.