Bitcoin (BTC), fell further into the June 30 Wall Street Open as US Equities opened with a whimper.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
The U.S. Dollar returns to multi-decade highs
Data from TradingView and Cointelegraph Markets Pro followed BTC/USD’s decline of $19,000, which was its lowest level in more than ten days.
The limp U.S. stock markets caused $20,000 and $19,000 losses for bulls. At the time of writing, the S&P 500 Index and Nasdaq Composite Index were down 1.8% and 2.6%, respectively.
The U.S. dollar made a comeback, aiming to return to the trajectory of the quarter’s twenty-year highs.
The U.S. dollar (DXY), which was at 105.1 on the morning, was within 0.2 points of its highest level since 2002.
U.S. dollar index (DXY) 1-day candle chart. Source: TradingView
“The US dollar (DXY), looks set to test new highs, last seen December 2002,” Faisal Khan, a trader and researchee, stated on Twitter.
Inflation data meanwhile suggested that the worst might be behind the market.
Peak #inflation Fed closely monitors inflation. May PCE showed that prices were less volatile than expected. Headline was +6.3% YoY (flat in April, below +6.4% expected), and core was +4.7% (from +4.9% of Apr & below 4.8% forecast). Bonds rally w/US 10y down 7bps pic.twitter.com/FFgb6du6dS
— Holger Zschaepitz (@Schuldensuehner) June 30, 2022
Cointelegraph reported that central banks started to recognize that the low rates before COVID-19 might never return.
Bulls have their worst month in 11 Years
Price data suggested that BTC could theoretically move in a bear market, with most of the on-chain metrics at historical lows.
Related: Bitcoin Cash users can no longer flex their thumbs as BCH loses 98% to Bitcoin
If it closes at $19,000, the BTC/USD will suffer monthly losses of more than 40% in June 2022.
This would be the most severe June in history and the largest monthly loss since September 2011. Data from TradingView and Coinglass, an on-chain monitoring resource, confirm that.
On a monthly basis, even March 2020 and the 2018 or 2014 bear markets were less severe than in March 2020. When BTC/USD traded at $8, 40% of the drops were seen.
BTC/USD Monthly Returns Chart. Source: Coinglasscom. You should do your research before making any investment or trading decision.