In a day marked by fluctuations, Bitcoin (BTC) faced a 5% decline, slipping to as low as $64,600 from its earlier position above $68,000. The retreat was attributed to a resurgent U.S. dollar following a surprise interest rate cut by the Swiss central bank. However, despite the setback, analysts remain optimistic about Bitcoin's future prospects.

The drop in Bitcoin's price occurred amidst a rally in altcoins, as Ripple's XRP, Filecoin's FIL, and the Internet Computer's ICP tokens made gains of 6% to 7% over the past 24 hours. In contrast, native tokens of layer 1 networks such as Solana (SOL), Avalanche (AVAX), and Aptos (APT) experienced declines of 2% to 3%.

The renewed strength of the U.S. dollar, as indicated by the U.S. dollar index (DXY), which measures its value against major currencies, has weighed on asset prices, including Bitcoin. The unexpected interest rate cut from the Swiss central bank reversed the losses seen on Wednesday after Federal Reserve Chair Jerome Powell adopted a dovish stance despite higher-than-expected inflation figures.

Market analysts from Swissblock commented on Bitcoin's recent price action, highlighting that the correction was completed before Wednesday's bounce. Swissblock analyst Henrik Zeberg indicated that Bitcoin is now set to target "much higher levels" in the next phase of its uptrend. Furthermore, Zeberg noted that altcoins and bitcoin miners are expected to perform "tremendously well" in this phase.

Jelle, a prominent crypto trader, believes that the bottom for the correction has been reached as long as Bitcoin holds the $65,000 mark. Jelle further suggests that Bitcoin could consolidate within the current price range and would need to breach the $69,000 level, which marked the peak of the market cycle in 2021, to reignite its rally towards higher prices.

As the cryptocurrency market continues to be influenced by various macroeconomic factors, traders and investors are closely observing Bitcoin's performance and the resilience of altcoins. With Bitcoin seeking to regain its upward momentum, the market awaits further developments that could shape the future of the cryptocurrency landscape.