Over the past week, the cryptocurrency market experienced some strain due to the ISM Services Index for August surpassing expectations with a score of 54.5, up from 52.7. This result exceeded economist predictions of 52.5 and confirmed the growth of the U.S. economy, eliminating the need for the Federal Reserve to contemplate easing monetary policy. As a result, interest rates rose, and Bitcoin (BTC) prices dropped below $25,400 on Thursday (7/09).
In recent times, the value of BTC has been witnessing a noticeable decrease, primarily due to the robust performance of the U.S. dollar. The dollar index has recorded consecutive gains for eight weeks, marking a record since 2014. This development has raised serious apprehensions and conjectures that the unrelenting rise of the dollar could have an adverse impact on the prices of BTC and the overall cryptocurrency market.
The Bitcoin (BTC) indicates a notable reversal, with prices dropping after briefly touching the $26,300 level. This downturn reflects the prevailing market weakness, suggesting a lack of bullish momentum. Investors should remain cautious as there is a potential for another attempt to breach the critical $25,000 level in the near term.
This level has historically acted as strong support, and its breach could trigger further declines. Traders are advised to closely monitor market developments to navigate the uncertain crypto landscape. Overall, the market sentiment remains uncertain, and a bearish outlook persists for the time being.
Ethereum (ETH) is currently trading lower, hovering around the $1,600 level. This decline indicates a bearish sentiment surrounding ETH, with investors expressing caution. Furthermore, the broader altcoin market is also displaying substantial signs of weakness, mirroring the sentiment seen in ETH.
Investors and traders should exercise prudence and closely monitor market developments, as the prevailing bearish sentiment could persist, potentially leading to further price declines.
This material is for general information and is not investment advice, a recommendation, or solicitation to buy and sell any cryptocurrencies, digital assets, securities or derivative instruments, or to make any investments. Mobee is under no obligation to update this report based on information and events that occurred after this report was created and published. Any suggestions or recommendations in this report may not be appropriate for certain users.