Bitcoin benefits From U.S dollar Crash
The pioneer cryptocurrency asset peaked at $88,500 as the dollar index maintained a 3-year low.
Quick overview
- Bitcoin peaked at $88,500 while the dollar index remained at a three-year low.
- The Crypto Fear and Greed Index indicated a level of 31, reflecting persistent fear in the market.
- Institutional demand drove a significant inflow of $381.40 million into US spot Bitcoin ETFs, marking the largest daily inflow since January 30.
- President Trump criticized the Federal Reserve, adding pressure on the US dollar amidst economic uncertainty.
Live BTC/USD Chart
The pioneer cryptocurrency asset peaked at $88,500 as the dollar index maintained a 3-year low. BTC held firm despite a marginal drop in the global cryptocurrency market capitalization to $2.75 trillion.
The Crypto Fear and Greed Index showed a level of 31, indicating overwhelming fear that has remained entrenched since February.
The recent surge in bitcoin was driven by institutional demand, as seen by Monday’s $381.40 million inflow into US spot Exchange Traded Funds (ETFs). Microstrategy (MSTR) purchased 6,556 Bitcoins for $556 million.
SoSoValue data highlighted Monday’s net inflow of $381.40 million into the US spot Bitcoin ETF was the largest daily inflow since January 30. Despite being much less than the inflows seen in early November, these inflows are good for Bitcoin because they show high institutional demand.
The US Dollar Index, which measures the US Dollar (USD) strength against six major currencies, is stagnant near a three-year low during the week on Tuesday.
The markets were taken aback when the US Dollar dropped in value during the Asian trading session and when European and US markets operated with a skeleton crew due to the Easter Monday bank holiday.
United States President Donald Trump has shifted his attention to the Fed and targeted Jerome Powell, calling him “a major loser” for not cutting interest rates and exploring ways to dismiss the Chairman, adding more downward pressure on the Greenback.
Chairman Trump intensifies his onslaught against the Fed with glaring insults, and the threat of an economic cloudy day has sparked economic snowstorm déjà vu.
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