Bitcoin struggles against a strengthening US dollar index, which reached its highest level since May 2025, pressuring risk assets.
Bitcoin traded near $64,000 as the US dollar index (DXY) surged to its highest level since May 2025, surpassing 100. The DXY’s strength, driven by macroeconomic uncertainty, typically weighs on crypto and risk assets due to their inverse correlation.
Historically, Bitcoin has struggled during periods of dollar strength, though July seasonality may offer relief after a weak June. Upcoming PCE inflation data and geopolitical tensions, including US-Iran peace talks, add to market volatility.
Traders noted the DXY’s break above key moving averages, signaling potential further upside. Meanwhile, Bitcoin’s $60,000 support level remains in focus amid mixed signals from short-term holders and whales.