US dollar touches new two-decade highs. On the other hand, the bearish run of Bitcoin continues. In fact, recent times have not been good enough for BTC and other crypto coins. Bitcoin especially has suffered the worst possible bearish run this year. The BTC price has dropped below not only the $25,000 mark but also below the $20,000 line. At the time of writing this article, BTC stands at a price tag of $19,806. This is really a cause of worry for the investors.
However, on the other hand, the US dollar surges ahead to reach a fresh two-decades high mark on 1st September. In fact, this is significant news as inflation keeps rising in the US, with the increasing fear of a full-fledged recession. If you wish to know more about this interesting scenario, then this article is the perfect stop for you. Keep reading this article to discover more about the interesting rise of the US dollar and the prolonged bearish run of BTC.
The Rising US Dollar Index
TradingView and Cointelegraph Markets Pro have provided data that shows Bitcoin falling down to $19,806 on Bitstamp. The BTC/USD pair witnessed sharp resistance in the attempt to cross over the $20,000 mark. The situation is becoming more complicated due to the macro cues.
In such a situation, the US dollar index went on to reach 109.97, thereby beating the previous peaks. In fact, this is the highest mark since 2002 September. As a result of this, the risk assets lost footing. In fact, the Nasdaq Composite Index and S&P 500 traded down 2% and 1% respectively. Kaleo, a popular crypto trading account, took to Twitter to summarise the rising DXY.
Various other users sighted the decline of the Japanese yen as yet another factor that might have boosted the growth of the dollar. Sven Henrich, the founder of NorthmanTrader also took to Twitter to state that there is a need of checking the bears.
Bad Time For Crypto?
September 15 has become a significant day for crypto users, as more clouds assemble over the market. The MT. Gox payouts are going to start soon after the legal battles are over. All the creditors will receive a share of almost 140,000 BTC. The selling pressure on the other hand will be massive. Therefore, the timing seems poor enough.
That is all you need to know about the recent rise of the US dollar and the bad condition of the crypto market.