The cryptocurrency market has been trading in the red over the last 24 hours. The price of major cryptocurrencies, including Bitcoin, has plummeted, with BTC dropping below $27,000.
There has been a notable rise in the value of the U.S. dollar in the current market situation as it approaches the 200 exponential moving average (EMA). Should a breakout happen, the dollar may experience further gains. This increase in the strength of the U.S. dollar could have a negative impact on cryptocurrencies and other financial assets, leading to a decline in their value.
There is a common inverse relationship observed between the strength of the U.S. dollar and the performance of cryptocurrencies. When the U.S. dollar gains strength, it often results in a decline in cryptocurrency prices, and conversely, when the U.S. dollar weakens, cryptocurrency prices tend to rise.
Whole crypto market bleeds in red
On Friday, the cryptocurrency markets experienced significant declines, with most major cryptocurrencies trading in the red. Bitcoin (BTC) saw a decrease of 1.82%, reaching a price of $26,875. Ethereum (ETH), on the other hand, dropped by 1% and was slightly above the $1,800 mark.
The trading volume for BTC amounted to approximately $14.5 billion, showing a 2.8% drop over the last 24 hours. The global crypto market cap also took a toll, with a 1.29% drop over the last day. According to CoinMarketCap data, it stood at $1.12 trillion at press time.
Major altcoins also took a toll on price, with Cardano, Solana, and Polkadot all shedding 1–2% of their value. The only coin that is trading in the green amidst the turmoil is Ripple (XRP). This is due to the positive sentiment rolling around the Ripple vs.SEC case, with the community anticipating the lawsuit to come to an end anytime soon.