Recent moves in the US economy are likely pushing BTC lower, making any Bitcoin profit unlikely. The dollar has recently strengthened as the Fed decided to skip a rate hike but still keep rates high. Furthermore, 10-year Treasury yields are at a high we haven’t seen since 2006. The dollar index managed to reach a high of over 106, its highest level since March.
Subsequently, Bitcoin dropped below $27,000 to around $26,600, a 1.5% drop. Some news did help buoy the coin slightly, as Mt. Gox can delay its BTC repayments. These repayments have been putting pressure on the market for a while as BTC holders wait to sell. This further leads to pessimism as to any possible Bitcoin profit.
Pressures in terms of interest rates put pressure on the crypto market. This means that crypto firms trying to refinance will find their costs jump up.
The Bitcoin price in pounds is around £21,744, doing relatively better.
Will Bitcoin Crash to Zero? – Examining the Crypto Market
For the crypto market to excel, they need rates to stop growing and hopefully even drop soon. However, the Fed seems to be sticking to a rate hike by the end of the year. There are even indications that data surrounding inflation may mean no rate cuts going into next year.
However, those asking, “Will Bitcoin crash to zero?” should not worry. In other crypto news, Ether has not been doing too well against Bitcoin. It dipped below $1,600, as it continues to lose out against BTC, now at a low of 14 months against the digital asset. Overall, then, it managed to drop by 1.8%. However, it is not unique in this regard, as the CoinDesk Market Index had a similar drop. Other crypto coins incurred even greater losses. Coins such as LDO, SOL, MATIC, and OP all had a drop in the range of 3.0%-5.0% yesterday.
Only a very select few made any gains over the day. The NFT platform ImmutableX’s token, IMX, managed a positive movement. This helped push up the CoinDesk Culture & Entertainment Index by 1.0%.