Bitcoin (BTC) has slipped further on today, June 30, after the opening of trading on Wall Street for the American stock market has also started rather mau.
Bitcoin Price Chart (Bitstamp). Source: TradingView
To the chagrin of Bitcoin: the US dollar is on the rise again
As the data from Cointelegraph Markets Pro and TradingView show, the Bitcoin price has even fallen below 19,000 US dollars on Thursday, bringing it to its lowest level in the last ten days.
So, the bulls could not defend either $ 20,000 or $ 19,000, which was largely due to the weakness of the American stock market, because the S& P 500 and the Nasdaq Composite Index lost 1.8% and 2.6%, respectively, at the beginning of trading.
Meanwhile, the US dollar – which has an inverse correlation to BTC – was able to rise again and climb towards the twenty-year high already reached this quarter.
Accordingly, the US Dollar index (DXY) stands at 105.1 points, only 0.2 points away from the highest level since 2002.
US Dollar Index (DXY). Source: TradingView
“The US dollar (DXY) is on the verge of recapturing the high of December 2002, which convincingly overturns the short-term downtrend, which in turn is bad for the risky financial markets,” as analyst Faisal Khan summarizes the situation on Twitter.
Meanwhile, the inflation data give hope that the market has at least survived the worst.
Peak #inflation? The inflation rate most closely watched by Fed showed that price pressures were a bit tamer: May PCE was a bit soft, w/headline +6.3% YoY (flat vs April, below +6.4% expected) & core +4.7% (from +4.9% in Apr & below +4.8% forecast). Bonds rally w/US 10y down 7bps pic.twitter.com/FFgb6du6dS
– Michael Kors (@Kors) June 30, 2022
As Cointelegraph reports, the central banks are nevertheless of the assessment that the low key interest rates as before the corona crisis will probably not come back so quickly.
Worst month in 11 years?
The silver lining, after all, is that a number of on-chain metrics are currently at record lows, which could indicate that bottoming is probably slowly being completed. In other words, it can only go up.
If June really ends with a price of $ 19,000 for Bitcoin, then the monthly loss would be over 40%.
Thus, BTC/USD would have entered the weakest June ever and at the same time recorded the heaviest monthly losses since September 2011, as confirmed by the data of TradingView and Coinglass.
Even the corona crash of March 2020 and the bear markets of 2018 and 2014 could not produce such bad months. The last time the Bitcoin price collapsed by more than 40% in a month, the price value was still a measly $ 8.
Bitcoin monthly statements. Source: Coinglass
In short: despite the first positive signs, the current situation is as bad as ever and without a real historical reference. Despite all optimism, caution is therefore still necessary.
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