US dollar hits 20-year high as Bitcoin price falls 2.7%
Bitcoin (BTC) encountered customary pressure at the Wall Street open on September 1 as the U.S. dollar reached new 20-year highs.
Cointelegraph Markets Pro and TradingView data tracked BTC/USD as it declined 2.7% from the day’s high to $19,658 on Bitstamp.
The pair saw tough opposition as it attempted to convert the crucial $20,000 level into firm support, with macro signals further confounding the bullish case.
This was shown by a rise in the U.S. dollar index (DXY) on the day in question, which surpassed prior highs to hit 109.97, its highest level since September 2002.
The S&P 500 and Nasdaq Composite Index were trading down 1% and 2%, respectively, at the time of writing, indicating a widespread decline in risk assets. “DXY with another solid day,” tweeted the prominent crypto trading account Kaleo.
Other analysts, including crypto account TXMC Trades, saw the weakening yen as a further dollar booster. USD/JPY reached 140.21, its highest level since August 1998.
“Dollar at levels last seen in 2002. It seems that crucial moment has arrived. Bears need a reversal. Bears need a breakout,” said Sven Henrich, creator of NorthmanTrader, adding that the DXY relative strength index (RSI) was “very stretched.”
The 15th of September became a significant day in the crypto traders’ calendars as a result of looming gloomy conditions.
After years of legal labour, payouts as part of the Mt. Gox rehabilitation process would commence only days after the August Consumer Price Index (CPI) inflation report was due.
Thus, creditors would begin to get a portion of almost 140,000 BTC, which was last traded for less than $500 per coin.
The debut coincides with the Ethereum Merge, in which the biggest cryptocurrency by market capitalization abandons proof-of-work in Favour of proof-of-stake as its consensus mechanism.