Dollar trade might explain bitcoin's terrible week

Bitcoin experienced a significant sell-off late in the week, peaking near $91,000 on Wednesday before reversing course. This peak coincided exactly with the dollar index (DXY) hitting a multi-year low of 95.34, suggesting a correlation where a weaker dollar supports crypto prices. As the dollar began a steady climb, bitcoin started pulling back. The acceleration of bitcoin's losses on Thursday was further fueled by news leaks suggesting Kevin Warsh, known for his hawkish stance, might be nominated as the next Fed chairman, causing the dollar to surge and BTC to gap lower, eventually bottoming around $81,000. Although bitcoin has since recovered slightly to $83,000, the continued strength of the dollar raises concerns about the sustainability of recent crypto gains.

(Source：CoinDesk)