US Dollar Soars to 20-Year High, Bitcoin (BTC) Price Drops Below US$20K

Bitcoin (BTC) Price Falls as US Dollar Skyrockets

BTC price faced fierce resistance as bullish investors tried to turn the US$20 thousand price into support. Global macroeconomic conditions also complicate the struggle of bullish investors.

The USD index (DXY) showed signs of strengthening and managed to break a record to reach 109.97, the highest point since September 2002.Therefore, the asset class is at risk of losing competitiveness. The S&P 500 stock index and the NASDAQ Composite Index declined 1 percent and 2 percent, respectively.

A crypto trader with an account called Kaleo tweeted that DXY is getting stronger. He said, “I don't see any sign that DXY will slow down for the next few months.”Crypto account TXMC Trades highlighted that the weakening Japanese yen (JPY) also boosted the USD's strength. USD/JPY hit 140.21, its highest point since August 1998.

Northman Trader founder Sven Henrich commented, “USD is at levels not seen since 2002. Now is a critical time, bulls need a reversal while bears need prices to break down.”Henrich emphasized that the Relative Strength Index (RSI) indicator for DXY is very high.

September is an important month for crypto investors. A few days after the August Consumer Price Index inflation will be implemented, the compensation process for the victims of the Mt. Gox will start after years of legal battles.Creditors will start receiving a share of the 137K BTC that was last traded at a price of US$500 when the exchange was hacked in 2014 and was eventually forced to close.

Selling pressure from creditors Mt. Gox became a topic of debate. Not only that, September is scheduled for an Ethereum (ETH) merge event, where the second largest crypto asset will transition from a proof of work (PoW) algorithm to proof of stake (PoS).Crypto sentiment has become very bearish. The Crypto Fear and Greed index fell to a value of 20 out of 100, its lowest since July 18 and signaling extreme fear in the crypto market.