Cryptocurrency Volatility Intensifies: Bitcoin Stressed At US$ 19,160, US Dollar Pressures

The cryptocurrency markets are highly volatile now, Bitcoin, and Ether, the two largest crypto coins are undervalued now. However, investors with a high-risk appetite are holding their positions, otherwise, the assets are facing a major sell-off. On October 21, Bitcoin quoted at around US$ 19,160.20, up by only 0.50%. However, in the past 1 month it has gained by 3.72%, and dropped by 52.74% in the last 6 moths.

The total market capitalization of the crypto market is US$ 996.87B, and the total volume is US$ 111.39B, with a 38.25% dominance of Bitcoin, Coindataflow data informs. After Bitcoin, Ether is the second largest cryptocurrency. Ethereum was quoted at US$ 1,300.36, up by 1.39%. Yesterday, Ethereum closed at US$ 1,311.93. Litecoin was quoted at US$ 51.52, up by 0.59%, Dogecoin was quoted at US$ 0.0588 up by 1.07%, and Cardano was quoted at US$ 0.3456 up 1.64% today, till last traded.

In August, Bitcoin reached US$ 24,461, but this month, the asset is even struggling to cross the US$ 20,000 range. The rising US Dollar index and US Bond Yields are significantly pressuring the cryptocurrency market now. The US 2-year Treasury bond yield was quoted at around 4.498%, and the US 10-year Treasury yield was quoted at around 4.217%, at a historically high level. Additionally, the US Dollar index quoted at 112.18 today.

Goldman Sachs strategist Kamakshya Trivedi wrote in a note, "We do not expect the Fed to embark on easing until 2024, and a trough in growth also seems months away." Mentioning this, a CoinDesk report anticipates, "That could be bad news for bitcoin (BTC). Among any number of reasons for the crypto's bear market of the past year, high on the list is the strong dollar. Bottoming in the middle of 2021 at just under the 90 level, the U.S. dollar index has shot higher to its current level of 113.69 - the strongest reading since early 2002."