The crypto market witnessed a sudden free fall as the US dollar index (DXY) jumps to a 20-year high of 112.87. Top cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH) fell more than 2% in an hour.

Bitcoin traded above the $19k level but dropped to $18.6k after the sell-off. While Ethereum (ETH) previously traded near $1,350, up more than 5%. However, the price returns to $1,258, losing previous gains.

Crypto Market Erases Gains As US Dollar Soars Higher

The US Dollar Index (DXY) jumped 1.34% higher to 112.87 on September 23. As a result, the crypto and stock markets are falling sharply as fears of a recession mount. The Dow Jones, S&P 500 and Nasdaq Composite indices fell more than 1.5% as investor sentiment faded amid the strong US dollar.

Crypto prices fell amid the market-wide sell-off as the strong US dollar clouded the crypto outlook. The price of Bitcoin (BTC) fell more than 4% from a high of $19,464 to $18,617, bringing the crypto market down. The BTC price is currently trading at $18,742.

Meanwhile, Ethereum price (ETH) plunged nearly 5%, falling to $1,258 from its high of $1,353. The ETH price is currently trading at $1,290.

While the market’s top crypto gainer XRP, which traded more than 35% in the last 24 hours, fell more than 11% to $0.47. Other cryptocurrencies also followed the top cryptocurrencies and wiped out previous gains.

The Fed raised interest rates by another 75 bps on Wednesday. The crypto market collapsed as the Fed Chair reiterated a hawkish outlook in an effort to contain inflation. However, experts fear that rate hikes increase the likelihood of a recession. Economist Nouriel Roubini, who predicted the 2008 financial crisis, warns of a global recession in 2022-2023.

Macros put pressure on the market

The crypto market sentiment index has fallen again to 20 as macros continue to increase fear among traders. Experts believe Bitcoin price could fall below $15,000, according to historical chart patterns.

Meanwhile, Ethereum price risks falling below USD 1,000 if the price moves below USD 1,270 and does not bounce back from the level. However, ETH price has formed a bullish divergence pattern and is most likely going to move higher.

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and is currently covering all the latest updates and developments in the crypto industry.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.



This post Bitcoin and Ethereum Erase Past Gains, Here’s Why

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