Bitcoin and other altcoins experienced a decline in price on Wednesday as the US dollar index continued to rally and the price of crude oil jumped. This drop in demand has caused Bitcoin Cash, Stacks, Neo, Solana, and Stellar lumens to drift downwards.
The main factor behind this sell-off was the increase in the price of Brent, the international benchmark, from the lowest level in June, to over $90 per barrel. This has sparked speculation that the Federal Reserve may continue to hike rates, which is supported by Christopher Waller, one of the most hawkish Federal Reserve officials.
The increasing value of the US dollar due to these expectations has lead many investors to seek out the safety of the US dollar, resulting in the dollar index rising to more than $104. This inverse relationship between cryptocurrencies and the US dollar has been further enforced by this increase.
Solana and Stellar have also declined despite the recent news of Visa’s USDC expansion to Solana’s ecosystem. Visa hopes to use this technology to process billions of dollars each day.
Although there is not expected to be any major catalyst for the coins in the near future, a Bitcoin ETF acceptance by the SEC could cause a shift in the market. This became more likely following GreyScale’s win in a major lawsuit last week.
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