Bitcoin falls near $63,900 as the Dollar Index nears a 13-month breakout, raising concerns over further declines.
Bitcoin traded near $63,900, down nearly 1% for a third consecutive day, as the Dollar Index climbed 0.26% to 100.66. The index is poised to break out of a 13-month range, a move that typically attracts momentum traders and strengthens the greenback.
The Dollar Index’s rise follows the Federal Reserve’s hawkish tone, sparking fears of higher U.S. interest rates. Bitcoin’s 90-day correlation with the index stands at -0.82, suggesting further downside if the dollar extends gains. Analysts warn a drop below the 200-week moving average at $62,258 could trigger deeper losses.
Historical data from Kraken indicates dips below this level have yielded median returns exceeding 100% over one and three years, though some analysts anticipate a sharper selloff.