Bitcoin
BTC$57 397.14

5.51%

Ethereum
ETH$4 325.04

6.69%

Binance Coin
BNB$609.29

4.33%

Tether
USDT$1.000997

0.02%

Solana
SOL$203.84

7.44%

Cardano
ADA$1.59

5.99%

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 77.6% 42 $57 397.14 5.51% -0.13% $1 084 001 374 692 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 78.8% 32 $4 325.04 6.69% 3.38% $512 656 495 446 ETH 7 days price change
3 Binance Coin (BNB) BNB Binance Coin predictions 73.6% 53 $609.29 4.33% 7.07% $101 630 227 689 BNB 7 days price change
4 Tether (USDT) USDT Tether predictions 96% 1 $1.000997 0.02% -0.01% $73 194 134 956 USDT 7 days price change
5 Solana (SOL) SOL Solana predictions 69.2% 65 $203.84 7.44% -8.23% $61 976 513 439 SOL 7 days price change
6 Cardano (ADA) ADA Cardano predictions 68.8% 60 $1.59 5.99% -11.72% $52 852 892 795 ADA 7 days price change
7 XRP (XRP) XRP XRP predictions 74.8% 51 $0.987767 7.45% -5.41% $46 582 102 093 XRP 7 days price change
8 USD Coin (USDC) USDC USD Coin predictions 91.2% 2 $0.998878 -0.13% -0.10% $38 347 542 030 USDC 7 days price change
9 Polkadot (DOT) DOT Polkadot predictions 62.4% 75 $36.25 8.95% -9.51% $35 798 276 399 DOT 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 61.6% 74 $0.205694 2.60% -7.52% $27 214 125 290 DOGE 7 days price change
11 Avalanche (AVAX) AVAX Avalanche predictions 62% 75 $112.35 3.84% -16.51% $25 147 340 195 AVAX 7 days price change
12 SHIBA INU (SHIB) SHIB SHIBA INU predictions 63.2% 77 $0.000039 3.61% -9.86% $21 537 353 661 SHIB 7 days price change
13 Crypto.com Chain (CRO) CRO Crypto.com Chain predictions 57.2% 90 $0.766272 1.87% 10.94% $19 358 331 922 CRO 7 days price change
14 Terra (LUNA) LUNA Terra predictions 62.8% 72 $49.02 8.15% 18.38% $19 258 363 664 LUNA 7 days price change
15 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 78% 46 $56 525.74 5.34% -1.06% $14 327 926 572 WBTC 7 days price change

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