Bitcoin fails to take advantage of dollar weakness and hesitates to assault $20,000

More consolidation for the digital assets market on a day in which the rest of the markets left advances and took advantage of the downward correction that the dollar has embarked in the short term. Bitcoin, however, does not take advantage of the 'momentum' to assault $20,000, where the price was rejected twice last week. As for the 'altcoins', Ether mimics the behavior, but its resistance level is at $1,350 - $1,400. In the last 24 hours, however, the advance is remarkable for the market and its total capitalization adds $20 billion to $955 billion.

In reality, Bitcoin "remains largely where it has been trading over the past month, with the exception of a couple of brief spikes," noted Craig Erlam, an analyst at Oanda. "The cryptocurrency may have formed a base for now, which could be an encouraging sign, barring another big wave of risk aversion in the markets," he stated. However, he stressed that "it has shown some resilience," contrary to what has happened in the stock markets. "Perhaps we have entered a waiting period, hoping that the storm will pass without further serious damage," he commented.

Other experts believe that digital assets will eventually move higher and benefit from the falling dollar, as it "seems to reflect in part that market participants have become more comfortable with the idea that the US Federal Reserve (Fed) is nearing the end of its rate hike cycle," stated MUFG experts. The US interest rate market expects the Fed to slow the pace of rate hikes, as interest rates move further into tightening territory and inflation is expected to decline further heading into next year, having peaked at 9.1% in June.

These expectations have been fueled in recent hours following the UN's warning to the Fed on rate hikes. Specifically, the United Nations Conference on Trade and Development (UNCTAD) released a report on Monday warning that central banks' monetary and fiscal policies are endangering the global economy. It stated that, in particular, interest rate hikes in the United States will reduce future revenues in developing countries by $360 billion.

In other news, cryptocurrency investors are also keeping an eye on the steps taken by regulators. In this regard, the US Treasury's Financial Stability Oversight Council (FSOC) warned about the risk posed to the financial system of the world's first economy by unregulated cryptocurrencies and recommended that Congress pass legislation granting greater oversight capacity in cryptoasset markets.

Finally, as reported by 'CNBC', Mastercard will debut new software on Tuesday that helps banks identify and cut off transactions on cryptocurrency exchanges prone to fraud.