Bitcoin
BTC$26 578.13

1.46%

Ethereum
ETH$1 851.65

1.45%

Tether
USDT$1.000135

0.02%

Binance Coin
BNB$263.30

1.73%

USD Coin
USDC$0.999980

0.01%

XRP
XRP$0.525411

1.38%

The battle of trust between the dollar and crypto


12 Nov 2021

#Bitcoin

It could very well be that yesterday we saw the start of a crucial battle for confidence in the financial system. The acceleration in US price growth to 6.2% y/y first was taken as a loss of control by the Fed over inflation. More accurately, assessments by speculators and small players as to what the market would think of this. As a result, we saw a powerful rally in cryptocurrencies and precious metals, which added more than 2% shortly after the data release.

Bitcoin set a new all-time high of $69K. Buying non-inflationary assets was investors’ first reaction to US price data. This reaction put the US on par with emerging markets, from which investors are fleeing on signs that the central bank is failing to curb prices.

A sustained reaction of this type would have had far-reaching consequences. However, towards the close of the US session, the debt market began to lay down more decisive and speedy Fed rate hikes, which triggered a strong capital inflow into the Dollar and reversed the initial reaction. In effect, this is bad news for bitcoin. At least for now.

At the close of the US session, BTCUSD found itself pushed back to the $64.5K area, 6.5% below peak, where it will consolidate in a narrow range. The fall in the major altcoins was commensurate, but given the initial surge, the losses over the day are not that great – 3% for BTC, -1.5% ETH and -2.2% for total cryptocurrency capitalisation.

Perhaps in the coming days, we will have to find out which side is right. At the end of the day on Wednesday, traditional financials should still win. The sell-off in cryptocurrencies and the Dollar’s highs against a basket of major currencies for more than a year speaks to the belief of “deep pockets” that the Fed has enough gunpower to fight inflation, and it will use it.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 93.2% 3 $26 578.13 1.46% -1.21% $515 523 852 307 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 92.8% 1 $1 851.65 1.45% -0.94% $222 625 164 413 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 96% 1 $1.000135 0.02% 0% $83 312 701 560 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 91.6% 11 $263.30 1.73% -13.80% $41 036 442 955 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 95.6% 1 $0.999980 0.01% 0.03% $28 439 686 561 USDC 7 days price change
6 XRP (XRP) XRP XRP predictions 69.6% 56 $0.525411 1.38% 3.20% $27 314 551 970 XRP 7 days price change
7 Cardano (ADA) ADA Cardano predictions 92.4% 7 $0.323589 0.63% -11.72% $11 293 739 388 ADA 7 days price change
8 Lido stETH (STETH) STETH Lido stETH predictions 92% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 90.4% 8 $0.067802 1.05% -5.51% $9 471 068 578 DOGE 7 days price change
10 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 71.2% 51 $0.077563 0.87% 3.14% $7 886 264 204 WTRX 7 days price change
11 Solana (SOL) SOL Solana predictions 84.8% 16 $18.90 1.09% -8.24% $7 526 603 562 SOL 7 days price change
12 Polygon (MATIC) MATIC Polygon predictions 84.8% 16 $0.780049 1.87% -12.35% $7 246 243 263 MATIC 7 days price change
13 TRON (TRX) TRX TRON predictions 74.8% 49 $0.077629 1.27% 3.65% $6 997 511 849 TRX 7 days price change
14 Litecoin (LTC) LTC Litecoin predictions 81.6% 38 $88.46 -0.35% -6.33% $6 466 841 922 LTC 7 days price change
15 Polkadot (DOT) DOT Polkadot predictions 94% 6 $5.03 0.42% -3.75% $5 993 939 800 DOT 7 days price change

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