According to data from CryptoCompare, around 15:50 UTC on Tuesday (September 1), Bitcoin went above the $12K level for the first time in almost two weeks.
To give you a rough idea of how well the crypto market is doing today, 19 of the top 20 cryptoassets (by market cap) are currently in the green (i.e. up against USD) and the only one slightly in the red is a fiat-backed stablecoin (USDC).
According to data from TradingView, during the past 24-hour period, the total crypto market cap has increased by 3.95%, and as of 10:00 UTC on August 31, it stands at $373.43 billion.
Prominent pseudonymous Bitcoin analyst “PlanB” pointed out earlier today that Bitcoin’s price action continues to match nicely his “Bitcoin (BTC) Stock-to-Flow (S2F) Cross Asset Model“, which is an enhanced version of his original Bitcoin price prediction model “Bitcoin (BTC) Stock-to-Flow (S2F)“, which was published in March 2019:
Messari researcher Ryan Watkins says that, thanks to inter-blockchain liquidity protocols such as RenVM, more than half a billion dollars worth of Bitcoin has entered Ethereum’s decentralized finance (DeFi) ecosystem so far in 2020 in search of “yield bearing opportunities”:
On Monday (August 31), IOVlabs announced that it had “integrated Chainlink Oracles into the RSK smart contracts platform as part of its RIF Gateways service; this gives developers “access to oracle infrastructure for connecting their smart contract applications to resources outside the RSK platform (off-chain).”
The “U.S. Dollar Index” (DXY)—which is “designed, maintained, and published by ICE (Intercontinental Exchange, Inc.)”—is “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.
According to MarketWatch, Currently (as of 16:52 UTC on September 1), DXY is at 92.18, up 0.04% today, but still at its lowest point since April 2018:
As MarketWatch reported last month, some people “fear the greenback’s weakness could mark a step toward eroding its status as the world’s premier reserve currency.”
And Bitcoiners see the decline in the value of the U.S. dollar as a sign that one day the world might be ready to accept Bitcoin as the main reserve currency.
Another safe haven asset that has benefited from the dollar’s weakness is gold, which is trading (as of 17:15 UTC on September 1) at $1,1970 per ounce, up 2.6%.
Of course, another reason for today’s surge in the price of Bitcoin could be the altcoin rally that has been mostly been led by Ethereum and ERC-20 DeFi tokens such as LEND, SNX, and YFI.
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.