Bitcoin Retreats from $91K as Dollar Gains Strength
Bitcoin nearly reached $91,000 on Wednesday but fell sharply as the U.S. dollar regained momentum.
This week’s sell-off, with BTC dropping to roughly $77,424, appears driven more by dollar movements than by crypto-specific factors. After a typical weekend dip, bitcoin had been climbing through the week, buoyed by a weakening dollar.
The weekly high came late Wednesday, following the Federal Reserve’s decision to hold interest rates steady and amid speculation over who President Trump might nominate as Fed chair. At the same time, the dollar index (DXY) hit a multi-year low of 95.34. A weaker dollar is traditionally supportive for risk assets such as bitcoin, stocks, and commodities.
The dollar reversed course Thursday, pushing bitcoin lower from its high. Reports that Kevin Warsh—a hawkish Fed contender—was likely to be nominated sent the dollar surging and BTC to an overnight low near $81,000.
Bitcoin has since rebounded to about $83,000, but the dollar’s strength raises questions about the crypto rally’s sustainability.
