Cryptoanalyst explains why “Altcoins could fall 45-50%”
On Saturday (July 8), the popular pseudonymous analyst and trader “Crypto Capo” (“@CryptoCapo_”On Twitter) explained why he thinks altcoins could fall another 45-50% from today’s price level.
“US Dollar Index” (DXY) – which is “designed, maintained and published by ICE (Intercontinental Exchange, Inc.)” – is “an index (or measure) of the value of the US dollar against a basket of foreign currency These other currencies are EUR, GBP, JPY, CAD, SEK and CHF.
According to data from TradingView, the US dollar index is currently (as of 08:57 UTC on July 9) around 106.89. And yesterday, the DXY reached 107.77, which is the highest it has been this year. In fact, since the start of 2022, DXY has risen 12%.
In contrast, since the beginning of the year, the BTC-USD has fallen over 54%.
Anyway, July 8, the cryptanalyst told his over 436,000 followers on Twitter:
“DXY goes parabolic. Bitcoin is rising a bit and people are getting euphoric and calling for 40k. Not a single bullish sign supports this rise, and the price is still at 21k-22k (resistance) …
“Rejection will be strong. Altcoins can fall 45-50%. It will not be grace.“
However, two other cryptanalysts disagreed with Crypto Capo’s comments that DXY pumping is bad for crypto.
Ran Neuner had this to say:
“See, I do not think you see this correctly. A strong DXY is the only thing that will bring down inflation. Strong DXY means lower energy and that means less aggressive FED. This is why growth stocks and Bitcoin are pumping.“
And Miles Deutscher so:
“Although historically inversely correlated, DXY pumping is not a bad thing given the current macro environment. Strong dollar = lower commodity / energy prices (in which they are denominated) USD USD)> lower inflation> Increases the probability of a * former * FED pivot.“
And later in the day, Crypto Capo explained why he expects the crypto market to reach new lows in the near future:
Photo credit
Featured image of ‘WorldSpectrum’ via Pixabay.com
