Earlier this week, noted crypto researcher Rover Crypto published a research note on Twitter, explaining that a huge Bitcoin move was expected to occur. The tweet captured Bitcoin’s price action, showing the asset between $18,000 and $20,200. Bitcoin’s price has jumped by 1.86% since the tweet was published.
HUGE #BITCOIN MOVE HAPPENING TODAY!! pic.twitter.com/wE0U79sEQS
— Crypto Rover (@rovercrc) September 25, 2022
Because Rover did not specify the direction of the predicted Bitcoin move, positive or negative, his tweet appeared to be open to interpretation. The consensus seems to be that the asset is only primed for a downward push as the market continues to struggle.
Strong Dollar Dampens Hope for an Accumulation
After Bitcoin’s price experienced a downtrend of over 10%, many crypto enthusiasts expected that Bitcoin would witness price movement to end the month. However, Bitcoin’s momentum was dulled by increasing pressure from the traditional market.
Over the weekend, the US Dollar index (DXY) kickstarted a significant bullish run, clearing multiple resistance levels to hit a high of $114.52. The dollar price surge sent shockwaves to the crypto market and the best altcoins.
Historically, Bitcoin’s price has moved inversely to that of the dollar. Since Bitcoin is heralded as the major store of value against inflation, a strengthened dollar can only mean bad news for Bitcoin.
Bitcoin’s price action in the past week marked the asset’s lowest weekly close since November 2021. And as the downsides continue to appear, analysts are expressing their concerns.
SB Investments, a noted researcher, explained on Twitter that Bitcoin’s price could set new lows this week as most major indexes are down and investor confidence in the dollar is returning.
$BTC just made the lowest weekly close in this zone. Looks bearish with stocks looking to break support as well. But on the other side this is what everyone expects…. pic.twitter.com/KlPfacxpuC
— SB INVESTMENTS (@BONTESA_) September 26, 2022
Fiat and Stocks Suffer as Dollar Surges
The surge in the dollar has also affected several major currencies. The British Pound experienced significant losses, dropping by 5% over the weekend and coming very close to the dollar’s value. With the Pound currently trading at $1.03 against the greenback, it has now hit its all-time low.
— Watcher.Guru (@WatcherGuru) September 26, 2022
The EUR/USD pair also fell briefly to $0.96, although the Euro eventually rebounded. Meanwhile, the USD/JPY trading pair remains close to its highest point since the 1990s.
A drop in global bond values to 2020 levels is also alarming many investors. Markets commentator Holger Zschaepitz warned that the value of global bonds fell by $1.2 trillion last week, bringing the total value loss from its all-time high to $12.2 trillion.
Looks like the bond market bubble has burst. The value of global bonds has plunged by another $1.2tn this week, bringing the total loss from ATH to $12.2tn. pic.twitter.com/JMBAGhdDlZ
— Holger Zschaepitz (@Schuldensuehner) September 25, 2022
Stocks aren’t set to do any better, with futures trading down before Wall Street opens. And with Brent crude oil falling below the $85-per-barrel mark for the first time this year, it isn’t easy to see any catalyst for a Bitcoin rise.
Since the bear market kicked into effect, Bitcoin’s price has been in lockstep with stocks and inversely correlated with the dollar. Barring any major development, the leading cryptocurrency’s price is expected to continue with the status quo of bearish movements.
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