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(Kitco News) – Global financial markets struggled against the soaring US Dollar on Monday as the DXY resumed its upward march, peaking at 114.289 and putting pressure on just about every other major currency in existence.
Due to the strengthening dollar, major equity indices drifted into the red within hours of the market opening and remained in negative territory, with the S&P, Dow and Nasdaq closing down 1.03%, 1.11% respectively. % and 0.60%.
Surprisingly to some, Bitcoin (BTC) managed to maintain its price level despite the rise in the value of the USD over the past two days. Data from TradingView shows that despite the DXY’s continued rise in recent weeks, BTC continues to trade in an increasingly tight range between $18,500 and $19,750.
BTC/USD 4 hour chart. Source: Trading View
Bitcoin’s relatively subdued response to the rising dollar was noted by Kitco’s senior technical analyst Jim Wyckoff, who noted in his morning update that “BC prices have been calmer over the amid higher volatility and heightened anxiety in many markets recently.”
As global economic concerns continue to escalate, “BC bulls are hoping market turmoil will place safe-haven supply in their crypto,” according to Wyckoff, but currently, “bears have the slight overall technical advantage short-term amid a slight downward price trend in place on the daily chart.
Independent market analyst Justin Bennett, who posted the following Tweet highlighting that the next wave of short selloffs will begin if Bitcoin hits $19,300, provided a deeper insight into Monday’s price action for BTC and the how it influenced derivatives traders.
$BTC is up today, and retail traders have once again placed their liquidation levels in a key area, in this case $19,600.
Massive short liquidations start at $19,300. ⌛️#Bitcoins pic.twitter.com/VdXkR5SR43
— Justin Bennett (@JustinBennettFX) September 26, 2022
The pound falls to a historic low
While the surge in the dollar had little effect on the crypto market on Monday, the same cannot be said for the pound, which hit a new all-time low against the dollar following the announcement of tax cuts and further increases in debt to limit the impact of a possible economic downturn.
Globally, the dollar emerged as the winning currency as investors sought shelter from deteriorating economic conditions.
This development could also prove beneficial for Bitcoin, which is increasingly seen as an inflation hedge in the face of falling fiat currencies and the underperformance of gold.
Crypto investors in Britain have already had some protection against BTC as the pound has fallen, with a recent research report commissioned by HM Revenue and Customs indicating that around 10% of UK adults hold assets in crypto.
Despite BTC’s negative performance in 2022, Brits holding Bitcoin have paper losses of around 53% year-to-date, while investors who denominate their holdings in dollars are down a bit more. by 62%.
A mixed day for the altcoin market
Overall, it turned out to be a mixed day for the altcoin market, as the number of tokens trading in the green was roughly equal to the number trading in the red.
Daily performance of the cryptocurrency market. Source: Coin360
The day’s top performers include Polymath (POLY), which climbed 14.3% to $0.25, IOTA (MIOTA), which gained 10.10%, and a 7% gain for Ethereum Name Service ( ENS).
The overall cryptocurrency market capitalization now stands at $934 billion and Bitcoin’s dominance rate is 39.2%.
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.
