Dollar Dominance Crushes Crypto Rally

Cryptocurrencies are experiencing losses this morning after last Monday's rally proved to be short-lived. The stronger US dollar is largely responsible for the decline, which has also been fueled by rising expectations of an interest rate hike in October.

The Federal Reserve's decision to raise rates was moved from 'probable' to 'highly likely', and it now seems almost certain that a hike will occur before long. This has had a negative impact on risk assets, including cryptocurrencies, which have struggled throughout September.

The US payrolls report for this week is expected to further cement the likelihood of an interest rate hike, with any unexpected decline in job growth potentially being seen as a shocker that could stall the rising probability of a rate hike. Bitcoin, in particular, has been struggling along with precious metals such as gold and silver.