Bitcoin price is down $800 in just over 24 hours, and elsewhere in the finance space, there is pure carnage. Gold fell below $1900, and stocks are downward spiraling. And behind it all is the dollar. But why is the Dollar Currency Index (DXY) potentially responsible for the market-wide collapse and what exactly is driving it?
Bitcoin Price Collapses $800 In Early Week Selloff, Another Test of $10,000 Next?
Bitcoin price tapped over $11,000 one last time before a deadly drop began later Saturday night and into Sunday. The drop extended deeper into the weekday trading week, with a fall to under $10,400 starting Monday morning.
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It wasn’t just Bitcoin, Ethereum, Ripple, and even top DeFi tokens tanked in the selloff. Blockchain data shows that miners were partly responsible for driving prices down, however, the drop is really due to the dollar.
The Dollar (DXY) Index Deals Devastating Blow To Crypto, Metals, and Stocks
Although Bitcoin has dragged down the rest of the crypto market, the leading cryptocurrency by market cap is just part of a market-wide collapse.
Alongside Bitcoin’s steep breakdown, the Dow Jones Industrial Average has bled over 800 points and gold is now trading back below $1900 an ounce.
Behind it all could be the dollar. The DXY Dollar Currency Index is a weighted basket of top forex currencies