According to Odaily, citing CoinDesk, Bitcoin, often described in this context as an “opponent” of the U.S. Dollar Index, is facing sustained pressure as the DXY moves closer to the upper boundary of a 13-month trading range. Data cited in the report showed that Bitcoin weakened for a third consecutive trading day, with its price hovering near $63,900. The broader crypto market was also broadly under pressure during the same period.
DXY Extends Gains Toward a Key Breakout Area
The U.S. Dollar Index rose 0.26% to 100.66, extending the previous trading day’s 0.8% gain. After this move, the index is now close to the edge of a key range breakout. The report noted that, if such a structural breakout is confirmed, it typically draws in trend-following capital that can further push the dollar higher.
Bitcoin’s weaker performance is being viewed against that dollar backdrop. As a risk asset priced in U.S. dollars, BTC is often affected by broad moves in the dollar. Historical data cited in the report shows a clear negative correlation between Bitcoin and the U.S. Dollar Index. When the dollar strengthens, dollar-denominated risk assets usually face additional pressure, which can weigh on Bitcoin as well.
Hawkish Fed Tone Supports the Dollar Narrative
The report also stated that the market believes the Federal Reserve’s hawkish remarks have reinforced the support logic for the dollar. That dynamic may further encourage capital to tilt toward safe-haven assets and dollar assets, adding another layer of pressure on crypto markets.
For now, the focus remains on whether DXY can break decisively above the upper end of its 13-month consolidation range. If dollar strength continues, Bitcoin and the broader crypto market will remain exposed to pressure from the dollar side. If the breakout is not confirmed, the negative-correlation framework between BTC and DXY will continue to be tested through price action.