Cryptheory – Just Crypto

Cryptocurrencies are our life! Get an Overview of Market News

Did the rising dollar trend cause the price of BTC and gold to fall sharply?

2 min read

 

BTC versus dollar.  Source: Shutterstock.com/Creativa Images
BTC versus dollar. Source: Shutterstock.com/Creativa Images

BTC exchange rate against the dollar after 19% correction stagnates at around $ 46,000. In the last 24 hours, the price has seen almost no change. Gold, meanwhile, continues to correct the legion and the dollar index is heading upwards.

Massive sale Bitcoins coincided in time with a remarkably similar but smaller decline in the competitive gold market. Similarly, the precious metal suffered the worst daily decline for the month on Tuesday. XAU / USD spot rates fell below $ 1,800 after an intraday move of minus 1.37%.

XAU / USD 1H.  Source: TradingView

 

XAU / USD 1H. Source: TradingView

The big red clock candle on the gold and BTC charts appeared between 10:00 and 11:00 UTC. However, BTC has consolidated sideways after a large decline, unlike gold, which prolongs the decline.

Cryptocurrency collapsed under the weight too speculative bull leverage trades. Bybt data showed that $ 3.68 billion of long options in the options market were liquidated in 24 hours. This is the largest liquidation since June.

Disposal of BTC in the last day.  Source: Bybt

 

Disposal of BTC in the last day. Source: Bybt

Automated liquidations caused further sell-offs in the BTC market. Traders were forced to sell their holdings to cover their margin longs.

Is the dollar responsible for the decline in BTC?

It is worth noting that the sudden decline in prices of BTC and gold coincided with a sharp rise in the index US Dollar (DXY). The index, which measures the strength of the dollar against a basket of top national currencies, rose 0.41% to 92.53 on Tuesday. At the moment it has stabilized at 92.74.

DXY 1H.  Source: TradingView

 

DXY 1H. Source: TradingView

DXY has moved away from its monthly low and benefited from rising Treasury yields before selling government debt this week.

BTC is officially legal tender in El Salvador, but each coin has two sides

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
BlackRock (IBIT), the Grayscale Bitcoin Trust (GBTC), Fidelity (FBTC), Ark Invest/21Shares (ARKB), Bitwise (BITB), Franklin (EZBC), Invesco/Galaxy (BTCO), VanEck (HODL), Valkyrie (BRRR), WisdomTree (BTCW), Hashdex (DEFI)

Leave a Reply

Your email address will not be published. Required fields are marked *