Recently, music artist and blockchain architect MartyParty posted on his Twitter page that the US Dollar had lost its volume and was on the verge of decreasing by almost 80%. He even asserted that people had lost their confidence in the US Dollar due to the decline in its volume.
It is remarkable that the Dollar had a strong performance in 2022, with the CDX rising to its 20-year high of 114. Sadly, the recent decline of CDX can be attributed to the aggressive monetary policies and interest hikes of The Federal Reserve. Consequently, several attempts have been made to restrict access to cryptocurrencies as The US officials tried to block the exits before the digital devaluation of the dollar.
Besides, the recent drop of CDX could also be caused by the inflation data, with the expectation of slower rate hikes and higher terminal rates for US interests rate. Generally, numerous elements, such as macroeconomic events and geopolitical considerations, would decide the performance of the US Dollar, which would then affect other fiat currencies as well as digital assets.
Robert Ward
- 2023-03-30
US Dollar's Volume On the Verge of Decreasing
The US Dollar has reached a 20-year low, with the devaluation of the currency attributed to Federal Reserve's aggressive measures and interest hikes. Learn what effects the declining CDX had on cryptocurrencies and macroeconomic events.
