- The USD exchange rate reached a new peak and strengthened its position
- Economic stabilization may lead to new measures from the Fed
- Against this background, the BTC rate fell by 2.7%
- The Crypto Fear & Greed Index Shows Investors Are Not Ready to Sell
On Thursday, September 1, the US dollar index increased by 0.9% to 109.68. This is a new high since 2002. At the same time, the rate of bitcoin, the largest cryptocurrency, decreased by 2.7%, to $19,658.
The US dollar index measures the price of this asset against a basket of six others. The most indicative is the change in value against the backdrop of the position of the extremely sensitive Japanese yen.
The USD/JPY hit a new 24-year high, breaking through 140.21. Together with a number of other markers, this signals the Fed that the economy is stable.
According to the expert, the increase in the US dollar index will entail a new package of measures by the regulator. At the same time, it is highly likely that the Fed will continue to “ tighten the screws ”.
The first signs of this are already visible in the context of the Bitcoin exchange rate. On Thursday, September 1, it fell by 2.7%. Now he’s flattened out a bit. As of this writing, the asset is trading at $20,084.
Not only cryptocurrencies have lost their positions. ” Dipped ” all high-risk assets, including S&P 500 (1%) and Nasdaq Composite (2%).
The dollar strengthened due to several factors. Among them: a further fall in the unemployment rate, a reduction in the number of layoffs in August, a decrease in price pressure, and an increase in the level of production (according to ISM).
NorthmanTrader founder Sven Henrich commented on the situation:
“The dollar was at this level for the last time in 2002. This is the defining point. It looks like the bulls need a rest and the bears need a break.”
It is also noteworthy that in less than two weeks the release of Ethereum 2.0 will take place. These are difficult conditions for such a large-scale update.
Some skepticism and even pessimism in the crypto community confirm the position of the Crypto Fear & Greed Index. It is now at its lowest level since July 18 and is in line with the “extreme greed” position.