Cryptocurrencies are ruling the assets market at present. Every other investor is showing their interest in this market and investing the majority of the capital in Cryptocurrency. Also, everyone seems to know something at the least about this industry.
There are many digital currencies in circulation that offer high returns as well. There are many platforms, such as bitcoin champion, that make it simple and secure to trade bitcoin.
Bitcoin is the dominant Crypto and it has the right reasons to hold this position. There has been high volatility and a rise in the prices of Crypto in the last few days. Also, USD is at a high level at current times, which might prove to be beneficial for Cryptocurrencies.
The Current Scenario Of Cryptocurrencies
The rates of digital currencies are increasing along with the rise of the USD. The value of BTCUSD is going up by 8% for the past few weeks. With this, the trading value of this Crypto is around $20,617 as per the data of CoinDesk.
While Ethereum ETHUSD is surging by more than 20.6% and trading value of $1,548. In the case of meme coin like Dogecoin as well, DOGEUSD is gaining around 28.8% at the moment. Also, Shiba SHIBUSD is on the list with 10.2% in the past few days.
Is Dollar A Ruling Currency?
Apart from the volatility in the Cryptocurrency industry, the international currency market as a whole is going through this situation this year. USD is rising to the highest value in 20 years of history. It is at the highest rate against its main rivals.
In September, the index of the Dollar DXY is rallying to the highest point of 114.8. It is one of the lofty heights that the currency has reached since 2002. Also, the Japanese currency, Yen USDJPY is in a weak position in comparison to the USD. This is the lowest level after 1990, and then it revived to around 146.25 Yen.
Similar is the case with the Chinese Yuan. It went down to its lowest after 14 years. But, this currency revived as well to 7.23 Yuan last month. Even, Pound was facing its lowest at 1.03 USD in September. After that, it went through some more losses before reviving to 1.16 USD. And, Euro is losing more than 12% in comparison to the USD.
Impact On Cryptocurrency
The high and strong value of the Dollar has a huge impact on Crypto. Because most of the Crypto trading is taking place on the greenback. And, the Dollar always leads to value fluctuations.
But, many experts believe that this volatile situation in the long run will have a beneficial impact on the Crypto industry. Though this may take time, there are chances of high benefits.
The analysts believe that as fiats get too high, people may find it suitable to opt for Cryptocurrencies like Bitcoin. Or they may go for stablecoins and other digital currencies which have pegged value with fiats like USD. They will keep it as a means to save the value of the capital. Experts say that it will be profitable for this entire ecosystem.
Low Volatile Situations
The Crypto market is full of volatility and high swings in value. But the recent volatility of Bitcoin and other Cryptocurrencies is lower than that of the top indices. Such a similar situation took place back in 2018, with BTCs volatility going lower than both the stock indices.
The occurrence of this rangebound market lies in several prime reasons. There are opposite forces in action in this market. Also, the situation of the entire economy is gloomy along with the rise in USA’s inflation rates. The growth of the economy around the globe has been slower than ever. Both the forces of negativity for the macro economy and positivity for the Cryptocurrency market are canceling each other.
Another market expert says that maybe people are just waiting and watching for the right moment to dive in. Also, the new year may cool down the negativity of the macro market. With this, there will be a mass investment in the Cryptocurrency industry.
Conclusion
The dollar is holding a strong position in the market and this has a direct impact on the Cryptocurrency market. There prevails confusion on whether high-valued USD will be profitable for Cryptocurrencies or not! And, in the long term, this condition will prove to be good for the Crypto industry.