Cryptocurrencies have experienced an unprecedented decline since mid-June as the dollar index bounces.
Cryptocurrencies experienced significant drops in the middle of the week. Bitcoin and the rest of the market are recording its biggest drop since mid-June.
The Bloomberg Galaxy Crypto Index, which tracks major cryptocurrencies like Bitcoin, Ether, XRP and Bitcoin Cash, fell 6.5 percent on Wednesday. This level of decline was last experienced on June 11th.
What underlies this decline in cryptocurrencies? According to Mati Greenspan, founder and analyst of Quantum Economics, who told Bloomberg about the issue, the downward movement in cryptocurrencies can be partially attributed to the strengthening of the dollar. “Like any other commodity, Bitcoin is somewhat inversely related to the dollar,” Greenspan said. says. The analyst added that the weakness in the dollar recently created upward movement in Bitcoin and similar currencies.
The US Dollar Index, which closed yesterday at 92.32 level, has exceeded 93 today. Likewise, the Euro / Dollar parity fell from 1.195 to 1.183.
Bitcoin, which was pulled up to $ 11,574, then bounced somewhat, and in the minutes the news was published, it was bought and sold for $ 11,758.