Analytics platform Santiment shared a remarkable analysis for Bitcoin. According to the company, which bases its analysis on the US dollar index (DXY), the leading crypto asset may rise soon. Here are the details…
The analytics firm linked the reasons behind the decline in crypto assets and the S&P 500 stock index to the dollar index. The dollar index (DXY) reached a ten-month high, Santiment reported. Santiment said that this rise of DXY negatively affected crypto assets and the S&P 500 index. The Dollar Index measures the value of the US dollar against other major currencies and therefore has a major impact on global financial markets. A ten-month high could increase the strength and appeal of the dollar, limiting demand for alternative investment assets.
However, interestingly Bitcoin has remained relatively stable despite this strong dollar environment. Over the past two weeks, Bitcoin has hovered nearly at breakeven, despite the S&P 500 index falling 5%. This shows that Bitcoin is resilient to the impact of DXY it could be. Moreover, “when DXY calms down, it could be an indication that a breakout could be coming.”
The leading cryptocurrency is trading at $26,459 at press time.
Turning to altcoins, Santiment said that caution should be exercised regarding Maker (MKR). This is because MKR is up over 40% in just over two weeks, reaching a 16-month high:
“The MKR entry moving into the exchanges is a situation to be cautious about, at least for a temporary local top.”
Santiment also stated the following about meme coins such as Dogecoin (DOGE):
“Meme coins are showing a smaller proportion of overall trader interest than they have in some time, as altcoins have seen more declines than gains since the crypto market local peak in mid-July. In particular, DOGE has the lowest conversation rate since 2020.”
At the time of writing, Dogecoin is trading at $0.0609, down nearly 27% from its five-month high of $0.0838 in July.
You can follow the current price movement here.