- Bitcoin falls over 2% to near $66,200 after a US presidential address on Iran.
- The US Dollar Index (DXY) strengthens to the 100 mark, pressuring risk assets.
- Traders eye a potential DXY breakout to 104, which could drive new crypto lows.
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Bitcoin Dips Below $67,000 as US Dollar Hits 100 Mark
Bitcoin (BTC) fell by more than 2% to trade near $66,200 as geopolitical tensions and a strengthening US dollar weighed on risk assets following a US presidential address on Iran.
"The market is now trading like the Iran War is ramping up for another month-long escalation," trading resource The Kobeissi Letter wrote on X. "Why? Because he didn't explicitly de-escalate.”
The risk-off tone sent the US Dollar Index (DXY) to the 100 level, while West Texas Intermediate (WTI) crude oil climbed back above $104 a barrel. The move in the dollar, which is traditionally inversely correlated with Bitcoin, has traders on high alert. Crypto trader BitBull noted the dollar appears to be in an "accumulation" phase, forecasting that an expansion "will send crypto and stocks to new lows."
A further rally in the dollar could spell more trouble for Bitcoin. Analyst Aksel Kibar has previously targeted a DXY level of 104, its highest since April 2025. Should the dollar continue its ascent, it would likely confirm a bearish outlook for Bitcoin, which continues to show structural weakness. Analyst Keith Alan of Material Indicators noted that BTC price action is "still nearly identical to the prior bear flag structure," suggesting a breakdown could follow.
This article is for informational purposes only and does not constitute investment advice.
