Bitcoin Falls from $91K as Dollar Strengthens
Bitcoin nearly hit $91,000 on Wednesday, only to retreat sharply as the U.S. dollar began to rebound.
This week’s sell-off, which saw BTC drop to around $77,424, appears driven less by crypto-specific factors and more by movements in the dollar. After a typical weekend dip, bitcoin had climbed through the week, supported by a weakening dollar.
Bitcoin peaked late Wednesday afternoon near $91,000, following the Federal Reserve’s decision to hold interest rates steady and amid speculation over President Trump’s choice for Fed chair. The dollar index (DXY) had fallen to a multi-year low of 95.34, a level historically seen as supportive for risk assets such as bitcoin, stocks, and commodities.
Despite warnings that a DXY below 96 could spark deeper declines, the dollar began climbing Thursday. Bitcoin retreated alongside it, with losses accelerating when reports emerged that Kevin Warsh—a hawkish contender—was likely to be nominated Fed chair. BTC ultimately bottomed near $81,000.
Since then, bitcoin has recovered to around $83,000, but the dollar’s continued strength raises questions about the crypto rally’s sustainability.
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