Crypto Markets Turn Sharply Lower As Dollar Strengthens

Bitcoin plunged 5% to $65,000 after yesterday's $300 million in GBTC outflows.

By: yyctrader Loading...

 image depicting the crypto markets crashing

After ending March on a high note, crypto markets are ringing in the new month with a bout of volatility.

Bitcoin is down nearly 9% in the past two days, selling off sharply after staging its highest monthly close ever on March 31.

BTC Price chart
BTC Price

Meanwhile, Ether has plummeted 11% from yesterday’s high of $3,650 and currently changes hands for $3,225. Overall, crypto’s market capitalization is down 5.3% to $2.6 trillion, according to Coingecko.

Global markets turned lower as the Dollar Index (DXY) hit a six-week high earlier today, driven by better-than-expected U.S. manufacturing data. Notably, gold spiked to an all-time high of $2,260 per oz. before retreating.

US Manufacturing Data
US Manufacturing Data

Strong economic signals decrease the likelihood of the Fed cutting interest rates, which in turn dampens investors’ risk appetites. The S&P 500 and the Nasdaq are down more than 1% on the day.

With the majority of the top 100 digital assets down in the past 245 hours, Bittensor, Core and Litecoin have managed to post gains of 5% or more.

Layer 1 blockchains Aptos and Sui are the day’s biggest losers, dropping 11% and 12%, respectively. Meanwhile, popular memecoins Dogecoin, Bonk, and Pepe are down 8% or more.