When it comes to new Bitcoin price strength, all bets are off as the US dollar approaches March 2020 highs. After another night of misery, Bitcoin (BTC) rebounded $39,000 on April 27. BTC/USD had touched its lowest levels since mid-March.
“All assets suffer” as a result of the raging dollar
The largest cryptocurrency was trading at $39,200 on Bitstamp at the time of writing, up 2.5 percent, according to data from TradingView. As soon as Wall Street trading resumed on Tuesday, new problems erupted, with Bitcoin following stocks downhill once more, hitting $37,700 twice. Despite the fact that the area had already been identified as a potential liquidity grab, several sceptics remained sceptical that the sell-off had ended.
Popular trader Kaleo suggested that the recent reprieve was just a dead-cat bounce, and that the real pain would come when momentum stopped.
Dump after this bounce is over with is gonna be so brutal
— K A L E O (@CryptoKaleo) April 27, 2022
“At this time, the price movement on Bitcoin isn’t screaming too loudly for upward. It’s tricky because it reverses every upward surge “Michaal van de Poppe, added. The US dollar’s bull run continued this week, putting pressure on cryptocurrency as the US dollar currency index (DXY) approached multi-decade highs reached in March 2020.
In a Twitter conversation regarding the phenomena, Economist Lyn Alden stated, “The DXY is soaring higher than my base case, due to policymaker decisions outside of my base case.”
“As a result, we must be cognizant of the market difficulties that arise when this occurs. It’s not a milkshake (e.g., the US raises rates and receives equities buy-in), but all assets are hurting.”
The dread of tradFi and crypto is palpable
Nerves among crypto and traditional traders were so palpable, as seen by the sharp drop in market mood. The Crypto Fear & Greed Index fell to its lowest point since April 12, when it was 21/100, indicating “severe fear” as the market’s governing attitude.
The Fear & Greed Index, which had been behind crypto in “neutral” territory until lately, has now caught up, recording 27/100 or “fear” on Wednesday.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
