Odaily, citing CoinDesk, reported that Bitcoin, often described in this context as an “opponent” of the U.S. Dollar Index (DXY), is facing continued pressure as traders focus on whether the dollar gauge is about to break above the upper boundary of a 13-month consolidation range. The pressure is not limited to Bitcoin alone, as the broader crypto market was also described as broadly under strain.
DXY Moves Toward the Edge of a Key Range
According to the data cited in the report, the U.S. Dollar Index rose 0.26% to 100.66, extending a 0.8% gain from the previous trading session. That move has brought DXY close to the edge of a key breakout zone after a prolonged 13-month range. The analysis noted that, if such a structural breakout is confirmed, it typically draws trend-following capital that can further drive the dollar’s upward move.
The report also linked the dollar’s support to a more hawkish tone from the Federal Reserve. Market participants cited in the item believe that the Fed’s hawkish remarks have strengthened the logic supporting the U.S. dollar and would further guide capital toward safe-haven assets and dollar-denominated assets.
Bitcoin Falls for a Third Straight Trading Day
At the same time, Bitcoin weakened for a third consecutive trading day, with its price hovering near $63,900. The overall crypto market was also described as broadly pressured, matching the broader focus on whether DXY can move above the top of its long-running range.
Historical data cited in the report shows a clear inverse relationship between Bitcoin and the U.S. Dollar Index. A stronger dollar typically weighs on dollar-denominated risk assets, and Bitcoin remains within that inverse-correlation framework. In this setting, BTC’s near-term pressure is closely tied to the direction of the dollar index and the market’s assessment of whether the DXY breakout is confirmed.