Bitcoin, Ethereum, Dogecoin Stagnant Amid Dollar's Unnerving Rise — Analyst Tells Investors 'Just Survive This Month' And Then Things Will Be Fine

Bitcoin, Ethereum and Dogecoin were seen largely flat on Tuesday evening as the global cryptocurrency market cap inched up 0.4% to $1.04 trillion at the time of publishing.

What Happened: The cryptocurrency news landscape on Tuesday was largely dominated by The Financial Accounting Standards Board (FASB) reaching a unanimous decision to endorse regulations for the accounting of fair values associated with companies’ cryptocurrency holdings. These regulations are scheduled to become effective in the year 2025.

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Cryptocurrencies remain lackluster in price action, while stock futures were little changed at the time of writing as investors retrain their focus on the Federal Reserve's action on interest rates.

It was reported that the ISM services PMI rose to 54.5 for August — a signal that services saw strong growth in the month and indeed in the last six months. The PMI number is up from July's 52.7 reading.

Meanwhile, the Greenback has been exhibiting increasing strength of late. The dollar index, which pits the U.S. unit against a basket of six currencies, rose to 104.84 on Tuesday after earlier hitting a six-month high of 105.03, reported Reuters.

See Also: Crypto Analyst Predicts 170% Upside For Dogecoin By 2024: ‘We All Know The Game Plan…Right?’

Analyst Notes: "The dollar's rise is starting to unnerve everyone. Last night, both Japanese and Chinese officials attempted to thwart the greenback’s rally, but weren't effective," noted Edward Moya, a senior market analyst at OANDA.

On rate cuts, Moya said that Wall Street has begun to believe that they won't take place until next summer.

Cryptocurrency trader Michaël van de Poppe advised his followers on X, formerly Twitter, to "just survive this month" and said things would be fine from thereon. He noted that some altcoins were already breaking out, which they tend to do 8-10 months prior to Bitcoin halving. 

In a separate tweet, Van De Poppe sounded optimistic on Bitcoin spot ETFs, which he said were "around the corner."

Meanwhile, Glassnode noted in a report that it has become "clear" that the market entered a "regime of capital outflow" in early August and that nearly $55 billion in capital left the digital asset space in August.

The on-chain analytics firm said that the trend was driven by capital outflows across all three assets, Bitcoin, Ethereum and stablecoins.

Aggregate Market Realized Value Net Position Change: Courtesy Glassnode

Photo by CMP_NZ on Shutterstock

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