The dollar hits a 19-month high, sending Bitcoin straight below $70K 📉
The Dollar Index climbed above 103.17, its highest level since April, and is up nearly 2% since early October. The trigger was still Tuesday’s hotter-than-expected CPI: the odds of a rate hike in December have climbed above 90%, and bets on a 50-basis-point hike have gone from zero to over 10%.
A stronger dollar is weighing on risk assets across the board:
$BTC touched a low of $68,528 this morning, falling below $70K for the first time since August 19. It’s currently around $68,850, down 6.6% in 24 hours.
$ETH also fell below $2,000 and is currently around $1,991.
Liquidations across the market topped $1.3 billion in 24 hours, with Bitcoin alone accounting for $677 million.
The Fear and Greed Index plunged from 28 to 20 in a day, straight into Extreme Fear.
This whale’s take: The logic behind this drop is pretty straightforward: hotter-than-expected inflation → rising rate-hike expectations → a stronger dollar → tighter liquidity. Crypto is just the first to take the hit. As long as the Dollar Index doesn’t turn around, buying the dip is like trying to catch a falling knife. The PPI at 21:30 tonight is the next wildcard; if it also comes in hotter than expected, holding the $70K line will only get harder. This whale is putting the day job aside for now and keeping an eye on the dollar.
The Dollar Index climbed above 103.17, its highest level since April, and is up nearly 2% since early October. The trigger was still Tuesday’s hotter-than-expected CPI: the odds of a rate hike in December have climbed above 90%, and bets on a 50-basis-point hike have gone from zero to over 10%.
A stronger dollar is weighing on risk assets across the board:
$BTC touched a low of $68,528 this morning, falling below $70K for the first time since August 19. It’s currently around $68,850, down 6.6% in 24 hours.
$ETH also fell below $2,000 and is currently around $1,991.
Liquidations across the market topped $1.3 billion in 24 hours, with Bitcoin alone accounting for $677 million.
The Fear and Greed Index plunged from 28 to 20 in a day, straight into Extreme Fear.
This whale’s take: The logic behind this drop is pretty straightforward: hotter-than-expected inflation → rising rate-hike expectations → a stronger dollar → tighter liquidity. Crypto is just the first to take the hit. As long as the Dollar Index doesn’t turn around, buying the dip is like trying to catch a falling knife. The PPI at 21:30 tonight is the next wildcard; if it also comes in hotter than expected, holding the $70K line will only get harder. This whale is putting the day job aside for now and keeping an eye on the dollar.
