$BTC: Further Dollar Weakness Helps Bitcoin to Break Above the $22,000 Level

On Monday (September 12), the $BTC price went above the $22,000 for the first time in over three weeks thanks to another drop in the U.S. Dollar index (DXY), which tends to be inversely correlated with risk-on assets such as stocks and crypto.

According to data by TradingView, on crypto exchange Bitstamp, around 1:40 a.m. UTC on September 12, the Bitcoin price went above the $22,000 level for the first time since August 19.

Source: TradingView

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.

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 5:11 a.m. EDT, DXY is at 107.93, down 0.99%.

Source: MarketWatch

This has helped Bitcoin, which on Bitstamp is currently (as of 9:20 a.m. UTC on September 12) trading around $22,244, up nearly 2.73% in the past 24-hour period. As for Ethereum ($ETH), the drop in DXY as well as the Merge (expected around September 15) narrative has helped it to surge above the $1750 level.

On Friday (September 9), FTX Ventures, which is a multi-stage venture capital fund, announced that it will acquire a 30% stake in global alternative investment firm SkyBridge Capital (“SkyBridge”), which was founded by former White House Director of Communications Anthony Scaramucci.

The press release stated that “FTX Ventures’ investment will provide SkyBridge additional working capital to fund growth initiatives and new product launches.” It also mentioned that “SkyBridge will use a portion of the proceeds to purchase $40 million in cryptocurrencies to hold on its corporate balance sheet as a long-term investment.”

FTX Co-Founder and CEO Sam Bankman-Fried (“SBF”) had this to say:

“After working with Anthony and his team following our SALT conference partnership, we saw there was an opportunity to work closer together in ways that could complement both our businesses. We look forward to collaborating closely with SkyBridge on its crypto investment activity and also working alongside them on promising non-crypto-related investments.“

FTX Ventures and @SBF_FTX are acquiring a stake in @SkyBridge. Sam & I have gotten to know each other for the last two years and have partnered together on a few things (including @SALTConference & @CryptoBahamas). We couldn’t be more excited about this partnership. pic.twitter.com/jIcKfiDeCl

— Scaramucci.algo (@Scaramucci) September 9, 2022

Also, Nasdaq-listed business intelligence company MicroStrategy Inc. (NASDAQ: MSTR) revealed in a Prospectus Supplement (To Prospectus Dated June 14, 2021) filing with the the U.S. Securities and Exchange Commission (SEC) that it planned to sell up to $500 million of class A common stock, the proceeds of which it intends to use for for “general corporate purposes, including the acquisition of bitcoin.”

There were so many explanations for last Friday’s $BTC pump (i.e. the euro, stocks, Ukraine winning, fwd inflation collapsing, Pomp capitulating, etc). Ironically, the major driver likely was the market front-running Saylor’s $500 million announcement after the close. https://t.co/ieZWdqyeFP

— Alex Krüger (@krugermacro) September 11, 2022

Image Credit

Featured Image via Pixabay

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