Bitcoin and US dollar recover

Bitcoin and US dollar recover
September 11, 2017
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Bitcoin, the world’s most popular crypto-currency that reached a record high of $4,911.80 on September 2, is still under pressure. Last week, the digital currency experienced a powerful decline caused by the Bank of China’s decision to ban ICO operations in the country. Last Friday, the Chinese Central Bank continued sanctions: the government decided to ban the digital currencies exchange.

On Sunday, Bitcoin fell below $4,000. At 14:15 GMT, the currency reached a low of $3,974.10, and then was traded at $4,138.60. Nevertheless, on Monday morning Bitcoin managed to rise by 1.9% to $4,306.85.

In response to the news on Beijing plans to stop the digital currency exchange in China, officials of the three major Chinese Bitcoin markets – OKCoin, BTC China, and Huobi – said they had not yet received an order from the Chinese government.

Ethereum, Bitcoin’s closest competitor by market capitalization, fell by $14.29 (5%) on Sunday to $288.50. However, on Monday morning it rose to $307.06. Like Bitcoin, Ethereum hit a record high of $394.78 earlier this month.

The capitalization of all digital currencies is currently $140 billion, which is almost 20% less than the record high of $180 billion they reached a week and a half ago.

The U.S. dollar keeps recovering against other major currencies after the recent fall to two-year lows. The main stimulus for the USD growth was eased tensions over North Korea and fears over Hurricane Irma, which was less forceful than expected.

At 7:00 GMT, the DXY rose by 0.26% to 91.55. On Friday, the index fell to 90.99, which was the lowest mark since January 2015.

The U.S. dollar moved up against the yen. The USD/JPY pair added 0.7% and reached 108.57 yen, recovering from the ten-month low recorded on Friday. Last Saturday, North Korea did not conduct the expected missile launch, and sentiment on the currency markets became calmer.

Another safe currency, the Swiss franc, also fell against the dollar. The USD/JPY pair rose by 0.66% to 0.9502.

The GBP/USD lost 0.28% and touched 1,2002 after rising to 1.2092 on Friday (the highest mark since January 2015). The euro fell below $1.20 after a member of the European Central Bank, Benoit Coeuré, stated that constant shake-ups in the currency markets could lead to a poor inflation rate in the Eurozone.