Bitcoin Cash, Stacks, Neo, Solana, Stellar Prices Decline as the DXY Skyrockets
Bitcoin and other altcoins experienced a continued decline on Wednesday. The surge in the US dollar index, along with the jump in crude oil prices, contributed to this downward trend. With signs indicating that the Federal Reserve might raise interest rates, fear has gripped the financial market, causing Bitcoin Cash, Stacks, Neo, Solana, and Stellar prices to drop by over 3%.
The recent developments in the energy market, particularly the surge in Brent, the international benchmark for oil, have prompted concerns about a potential rise in inflation. Some analysts predict that Brent could reach $100 per barrel in the coming weeks. As a result, the Federal Reserve may maintain its hawkish stance and go ahead with another interest rate hike, possibly pushing rates to 5.75%.
However, not all economists share this view. Some believe that the Fed will maintain current interest rates until more information about inflation is available. Christopher Waller, a prominent Federal Reserve official, supports this perspective. Nonetheless, the anticipation of another Fed rate hike has led many investors to seek the safety of the US dollar. The dollar index has climbed to its highest level in more than five months, surpassing $104.
Typically, cryptocurrencies, including Bitcoin and Ethereum, exhibit an inverse relationship with the US dollar. Consequently, their prices tend to retreat when the DXY index is on the rise. This explains the retreat in Solana and Stellar prices, despite positive news from Visa. The fintech giant announced its expansion of the USDC stablecoin to Solana’s ecosystem. Since USDC is built using Stellar’s technology, this development affected Stellar prices.
In the near term, the outlook for Bitcoin and other altcoins remains bearish due to the absence of significant catalysts. However, the acceptance of a Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) could potentially boost the market. The chances of this happening have increased since GreyScale recently won a major lawsuit.
How to Buy Bitcoin Cash
If you’re interested in buying Bitcoin Cash, here are two platforms you can consider:
- eToro: eToro offers a wide range of cryptocurrencies, including Bitcoin Cash, XRP, and more. Users can connect with and learn from other users, as well as copy or get copied by them.
- Public: Public is an investment platform that allows you to invest in stocks, ETFs, crypto, and alternative assets like fine art and collectibles, all in one place.
The market conditions and the Federal Reserve’s actions will heavily influence the future performance of Bitcoin Cash, as well as other altcoins. It’s essential to stay updated on the latest news and developments in the cryptocurrency market to make informed investment decisions.
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