Bitcoin and gold fall bring back interest to the dollar
On Tuesday, the dollar added around 0.5% to a basket of the six most popular currencies on turbulence in some market sectors. The “buy rumours, sell facts” model played out in full force yesterday and may continue to dominate the markets for quite some time. Bitcoin has officially become legal tender in El Salvador. Both media and social media have spurred interest in the event in recent weeks. The price reaching the $53k area triggered big profit-taking, which quickly escalated into a margin call that pushed the price back to $10k at one point.
Bitcoin is profoundly entwined with the financial system, so its volatility affected the overall demand for risk. There was a telling sell-off in precious metals, where gold lost about 1.5% to $1800, while silver and platinum fell over 2%, to $24.2 and $1000, respectively. These metals were pushed back to critical technical levels, once again raising the question that investors are ready to switch to long position liquidation mode very quickly. This was also reflected in the Wall Streets Fear Gauge, the VIX, which jumped 15.7% on Tuesday. Remarkably, the local lows of the index have been increasingly higher since July, which means that the lull in the markets is becoming less and less calm.
The drop in bitcoin and gold and the jump in the VIX points to increased nervousness in the markets. In such an environment, investors often perceive a relatively neutral news backdrop as an excuse to tread carefully to lock in profits. However, the dynamics of the same Bitcoin clearly show how quickly the market can move from this phase to margin calls, when a broad pull into the most liquid and defensive securities is formed, triggering strong demand for the dollar.
Historically, September is considered the worst month for the stock market, as funds and investors often lock in profits towards the end of the US financial year. And we already see a clear manifestation of this traction in instruments sensitive to the pull into risky assets.
Top Cryptocurrencies with Price Predictions
| # | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
| 1 |  BTC |
Bitcoin predictions | 59.2% | 82 | $28 464.06 | -0.08% | 3.56% | $550 339 428 246 |  |
|
|---|---|---|---|---|---|---|---|---|---|---|
| 2 |  ETH |
Ethereum predictions | 70.8% | 64 | $1 821.21 | -0.06% | 4.47% | $219 378 604 902 |  |
|
| 3 |  USDT |
Tether predictions | 92% | 1 | $1.000305 | 0.01% | -0.04% | $79 718 134 880 |  |
|
| 4 |  BNB |
Binance Coin predictions | 73.6% | 55 | $314.89 | -0.67% | -2.40% | $49 718 142 531 |  |
|
| 5 |  USDC |
USD Coin predictions | 96% | 2 | $0.999802 | 0% | 0.02% | $32 521 009 846 |  |
|
| 6 |  XRP |
XRP predictions | 62% | 86 | $0.509747 | -5.31% | 14.63% | $26 342 796 029 |  |
|
| 7 |  HEX |
HEX predictions | 66.4% | 68 | $0.079425 | -10.16% | -5.23% | $13 773 256 366 |  |
|
| 8 |  ADA |
Cardano predictions | 74% | 46 | $0.393356 | -1.40% | 11.74% | $13 666 228 073 |  |
|
| 9 |  DOGE |
Dogecoin predictions | 82.8% | 24 | $0.081783 | 6.05% | 10.46% | $11 348 676 475 |  |
|
| 10 |  STETH |
Lido stETH predictions | 93.2% | 1 | $2 941.39 | -0.40% | -3.32% | $10 258 752 564 |  |
|
| 11 |  MATIC |
Polygon predictions | 81.6% | 26 | $1.11 | -0.66% | 3.06% | $10 094 693 708 |  |
|
| 12 |  SOL |
Solana predictions | 80.4% | 36 | $21.08 | -0.47% | 3.15% | $8 130 513 636 |  |
|
| 13 |  BUSD |
Binance USD predictions | 93.2% | 1 | $0.999558 | -0.01% | 0% | $7 553 845 647 |  |
|
| 14 |  DOT |
Polkadot predictions | 85.2% | 27 | $6.35 | 0.08% | 7.44% | $7 438 756 957 |  |
|
| 15 |  LTC |
Litecoin predictions | 73.6% | 51 | $92.65 | 3.29% | 1.22% | $6 727 455 612 |  |
