On Tuesday (October 15), weaker than expected U.S. housing price data and weakening U.S. consumer confidence data helped the U.S. dollar to fall, thereby giving a boost to the crypto market, with the Ethereum ($ETH) surging around 10%.
According to a report by CNN, “home prices rose 13% in August from the year before, a smaller jump than the 15.6% growth seen in July and 18.1% pace in June, according to the S&P CoreLogic Case-Shiller US National Home Price Index.” The report went on to say that “the drop between July and August was the largest deceleration in the history of the index going back to 1987, surpassing the previous record a month prior.”
Craig J. Lazzara, managing director at S&P Dow Jones Indices, said:
“These data show clearly that the growth rate of housing prices peaked in the spring of 2022 and has been declining ever since.“
As for U.S. consumer confidence, according to a press release issued earlier today by The Conference Board, “The Conference Board Consumer Confidence Index decreased in October after back-to-back monthly gains,” with The Index now “at 102.5 (1985=100), down from 107.8 in September.”
Lynn Franco, Senior Director of Economic Indicators at The Conference Board, had this to say:
“Consumer confidence retreated in October, after advancing in August and September. The Present Situation Index fell sharply, suggesting economic growth slowed to start Q4. Consumers’ expectations regarding the short-term outlook remained dismal. The Expectations Index is still lingering below a reading of 80—a level associated with recession—suggesting recession risks appear to be rising.“
These two pieces of data helped the U.S. Dollar Index (DXY) to drop by nearly 1% today:
Although it is hard to prove that DXY and BTC are inversely correlated (especially since Bitcoin and Ethereum has not been around for that long), since the start of the COVID-19 pandemic, we have mostly seen BTC (and other cryptoassets) go down when DXY goes up and vice versa.
According to data by TradingView, on crypto exchange Bitstamp, the $ETH price got as high as $1,481 (around 4:04 p.m. UTC), and currently (as of 5:53 p.m. UTC) ETH-USD is trading around $1,474, up 10.32% in the past 24-hour period.
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Featured Image via Pixabay
