• The declining bitcoin price resulted in a fall of mining stocks on Monday.
• The value of BTC dropped below $30,000 in light of the U.S. Dollar Index.
• Recent Empire State Manufacturing data may have caused the USD to gain strength.

Shares in bitcoin mining companies experienced a decrease on Monday as the asset they mine and store, BTC, decreased below $30,000 for the second time.

What Caused the Bitcoin Price to Decline Today?

One of the major reasons for the depreciation of the Bitcoin price today is the upward movement of the U.S. Dollar Index. BTC is inversely correlated to USD due to its purpose of replacing fiat currency.

Why is this important? Possibly because of the Empire State Manufacturing data showing a recovery in factory activity in New York in April, the first time in a while.

Below are some of the prominent bitcoin mining stocks that ended down on Monday: Riot Platforms, Bitfarms, Hut 8 Mining Corp.

Is Bitcoin Still in a Bear Market?

Let’s look at it from a different perspective. The monthly business activity survey displays that the U.S. economy is standing strong despite the difficulties. The central bank has some space to raise rates to bring down inflation, which was 5.0% at the end of March.

This is significant, as the world’s largest cryptocurrency performed poorly last year when interest rates were increasing. However, there’s no need to read too much into the decrease in BTC today, considering that recent bank failures may make the Federal Reserve rethink its hawkish stance. According to FxPro Analyst Alex Kuptsikevich:

Technically, Bitcoin has already demonstrated the end of the bear market. It is now above important moving averages and is gradually reversing from its bottom.