Originally published on: September 01, 2022
The US dollar reached new heights, hitting a two-decade high while Bitcoin faced a 2.7% decline on September 1st. As BTC dropped to $19,658 on Bitstamp, investors closely monitored the struggle to maintain the crucial $20,000 level as support amidst challenging macro trends.
Amidst a resurgent US dollar index (DXY) climbing to 109.97, its highest since 2002, risk assets experienced a general decline. The S&P 500 and Nasdaq Composite Index recorded losses of 1% and 2% respectively.
Crypto enthusiasts and analysts took to social media to discuss the implications of these developments. “DXY with another strong day,” popular crypto trading account Kaleo tweeted. Meanwhile, NorthmanTrader founder Sven Henrich highlighted the stretched nature of the DXY relative strength index (RSI), signaling a critical juncture for traders.
Looking ahead, September 15th marked an important date for the crypto community, with key events including the Mt. Gox rehabilitation payouts and the Ethereum Merge. These milestones generated mixed sentiments, reflected in the Crypto Fear & Greed Index dropping to its lowest level since July 18.
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