The Potential for Bitcoin to Surge Based on a Major Macro Indicator
According to analytics platform Santiment, the flagship cryptocurrency, Bitcoin (BTC), has the potential to experience a surge in value. Santiment notes that the US dollar index (DXY) has reached a ten-month high, leading to a decline in both crypto assets and the S&P 500 stocks index.
Unlike the S&P 500 index, which has fallen by 5% over the past two weeks, Bitcoin has remained at a break-even point during this period, despite the strength of the dollar. Santiment suggests that this stability may indicate a forthcoming breakout once the DXY settles down.
As of now, Bitcoin is trading at $26,459.
Caution Advised for Maker as its Token Soars
Santiment also warns about Maker (MKR), a decentralized finance project. The native token of Maker Protocol has surged by over 40% in just over two weeks, reaching a 16-month high. However, Santiment advises caution due to an inflow of MKR moving to exchanges, which could potentially lead to a temporary local top.
Currently, Maker is trading at $1,520.
The Decline of Memecoins and Dogecoin’s Discussion Rate
Santiment highlights the decline in altcoins since the mid-July crypto market local top. Memecoins, in particular, have shown a smaller ratio of overall trader interest compared to previous times. Dogecoin (DOGE) has the lowest discussion rate since 2020.
At present, Dogecoin is trading at $0.0609, experiencing a 27% decrease from its five-month high of $0.0838 reached in July.
Hot Take: Bitcoin’s Potential Eruption
Based on the analysis by Santiment, Bitcoin may experience a surge in value once the US dollar index settles down. Despite recent declines in crypto assets and the S&P 500 index, Bitcoin has remained stable. This stability suggests that a breakout could be on the horizon for Bitcoin investors.
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