Bitcoin Surges Above Psychologically Important $20K Level Thanks to Drop in Dollar

On Friday (September 9), the $BTC price went above the $20,000 thanks to a drop in the U.S. Dollar index (DXY), which tends to be inversely correlated with risk assets such as stocks and crypto.

According to data by TradingView, on crypto exchange Bitstamp, around 4:00 a.m. UTC on September 9, the Bitcoin price went above the $20,000 level for the first time since September 2.

Wikipedia describes the U.S. Dollar Index” (DXY) — which is designed, maintained, and published by ICE (Intercontinental Exchange, Inc.) — as “an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies.” These other currencies are EUR, GBP, JPY, CAD, SEK, and CHF.

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Although at 8:05 a.m. EDT on Wednesday (September 7) DXY surged to 110.75, its highest level in over two decades — since then it has been falling, thereby allowing stocks and crypto to get some badly needed oxygen.

And according to data by MarketWatch, today, as of 3.55 a.m. EDT, DXY is at 108.54, down 1.07%.

This has helped Bitcoin, which on Bitstamp is currently (as of 8:15 a.m. UTC on September 9) trading around $20,663, up nearly 8% in the past 24-hour period. As for Ethereum ($ETH), the drop in DXY as well as the Merge (expected around September 13-15) narrative has helped it to surge above the $1700 level for a gain of 5.63%.

Image Credit

Featured Image via Pixabay

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