Odaily reported that Bitcoin, often described in this context as a counterpart to the U.S. Dollar Index, is continuing to face pressure as traders watch whether DXY can break above the upper boundary of a 13-month consolidation range. According to the data cited in the report, Bitcoin weakened for a third consecutive trading day and was hovering near $63,900. The broader crypto market was also broadly under pressure.
DXY extends gains toward a key range boundary
At the same time, the U.S. Dollar Index rose 0.26% to 100.66, extending a 0.8% gain from the previous trading day. The report said DXY is now close to the edge of a key range breakout. The analysis cited in the article noted that, if such a structural breakout is confirmed, it typically draws additional trend-following capital that can push the dollar higher.
The dollar index measures the performance of the U.S. dollar against a basket of major currencies, while Bitcoin and many other crypto assets are priced in U.S. dollars. The report highlighted that historical data show a clear negative correlation between Bitcoin and DXY. In that framework, a stronger dollar tends to weigh on dollar-denominated risk assets, while weakness in the dollar reduces that specific pressure.
Hawkish Fed comments support the dollar narrative
The latest support for the dollar was also linked to hawkish comments from the Federal Reserve. According to the report, the market view is that such remarks strengthened the logic supporting the dollar and further directed capital toward safe-haven assets and dollar assets. Against that backdrop, Bitcoin’s three-day decline reflects the pressure faced by crypto assets during a period of dollar strength.
As described in the report, Bitcoin remained near $63,900, while DXY stood at 100.66. The next focus is whether the dollar index can move decisively above the top of its 13-month range, and whether that move continues to align with the historically negative relationship between Bitcoin and the dollar index. The original analysis was attributed to CoinDesk.