Bitcoin price drops below $37,000 after the dollar index rose to its highest level in decades
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Answer Bitcoin price drops below $37,000 after the dollar index rose to its highest level in decades
Bitcoin price drops below $37,000 after the dollar index rose to its highest level in decades
The decline and decline of Bitcoin was not the only one as the US stock markets were also affected.
Some tech stocks are down hundreds of billions of dollars, with the Nasdaq Composite heading for its worst day since June 2020 after dropping 5%.
Shares of technology giants, such as Amazon, also fell as much as 7%.
Currently, cryptocurrencies and stocks have been struggling to regain ground since the beginning of the year due to the tightening of the US Federal Reserve.
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We have mentioned in previous articles on Bitcoin Arab about the Federal Reserve raising the benchmark interest rate by 50 basis points for the first time since 2000.
The central bank appears determined to bring down inflation, which recently reached its highest level in four decades.
The market responded smoothly to the announced news and decisions.
Both cryptocurrencies and stocks saw a short-lived bounce after Federal Reserve Chairman Jerome Powell said 75 basis points of gains were not on the table.
Now that investors and traders have reassessed Powell’s comments, negative sentiment is driving the market movement once again.
The dollar leads the way:
The massive drop in the price of Bitcoin coincided with the US Dollar Index (DXY) reaching its highest level since December 2002.
The dollar index peaked at nearly 104 early today, rising 9.65% since the start of the year.
Thus, the dollar strengthened its position as a reliable safe haven for investors.
Bitcoin usually tends to underperform severely when the dollar is showing strength and vice versa.
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