In a recent report by market intelligence platform Santiment, the resurgence of the US Dollar Index (DXY) to levels not seen since November has sent ripples of caution through the cryptocurrency and S&P 500 markets. While the Dollar’s ascent has historically heralded bearish sentiments for these assets, Bitcoin has exhibited resilience, hinting at the potential for a breakout once the Dollar stabilizes.
💸 The #Dollar has crept up to its highest level since last November. Particularly since 2021, this has been a #bearish signal for #crypto and the #SP500. However, $BTC has held up well, which may indicate a breakout could come once the $DXY settles down. https://t.co/zplpYJjSkf pic.twitter.com/iTyof07MNm
— Santiment (@santimentfeed) September 27, 2023
The US Dollar Index, tracking the greenback’s performance against major currencies, has been on an impressive 11-week winning streak, nearing crucial resistance levels. Traditionally, a strong Dollar has spelled trouble for riskier assets like cryptocurrencies and stocks. Bitcoin, however, has defied expectations, managing to weather the storm, albeit with some fluctuations. Per Santiment, potential correction in the Dollar could bode well for BTC prices, offering a glimmer of hope for investors.
Bitcoin’s price witnessed a dramatic surge recently, shooting up from just above $26,200 to a peak of $26,800 in a mere two hours. This peak represented a formidable resistance level, leading to a swift rejection and a subsequent dip below $26,200 within the same short span. Such swift fluctuations are characteristic of the cryptocurrency market, keeping traders on their toes. Despite this volatility, Bitcoin, currently trading at $26,396.19, demonstrated resilience, slowly recovering as the evening wore on.
Among the top ten cryptocurrencies, Ethereum and Solana have carved out a niche, with gains of 1.21% and 1.33%, respectively, while others hover slightly in the red. XRP saw the steepest decline at 0.83%. For now, no significant outliers stand out in this diverse market. Investors are keeping a close eye on these emerging trends, looking for opportunities beyond Bitcoin.
The United States is poised for a day of crucial macroeconomic releases. The Gross Domestic Product (GDP) figures for the previous quarter are anticipated to show a positive growth rate of 2.1%. An unexpected downturn could raise concerns about a looming recession, potentially impacting Bitcoin prices. Concurrently, the weekly benchmark for First Applications for Unemployment Compensation is expected to reach 215,000, a slight increase from the previous week’s 201,000.
