Bitcoin near all-time high as dollar slides to three-year low

Bitcoin is holding agency close to historic highs because the U.S. greenback tumbles to its weakest stage in additional than three years, spotlighting the delicate dance between crypto costs and the world’s dominant reserve foreign money.

As of Friday morning in London, Bitcoin traded at $107,639, up round 9.8% for the reason that begin of the yr and 6% during the last week. The world’s largest cryptocurrency stays simply shy of its all-time excessive of $111,900 set on Might 21. In the meantime, the U.S. Greenback Index (DXY) has slipped to 97.10, marking a 10% decline year-to-date and fueling hypothesis about how a lot additional the greenback may fall.

The greenback’s slide comes amid a swirl of macroeconomic forces: expectations of looser Federal Reserve coverage, indicators of easing commerce tensions between the U.S. and China, and rising worries that political pressures may undermine the Fed’s independence.

Analysts say these dynamics are reviving Bitcoin’s enchantment as a hedge in opposition to greenback debasement and conventional monetary volatility.

Vasileios Gkionakis, senior economist and strategist at Aviva Traders, in feedback to Reuters, stated,

“I don’t assume it’s simply the repricing of the Fed. There’s a broader subject right here of some tarnishing of U.S. exceptionalism.”

Markets are at the moment pricing in round 64 foundation factors of fee cuts for the remainder of 2025, up from 46 foundation factors anticipated only a week in the past. Hypothesis can also be swirling that President Donald Trump might set up a extra dovish Fed chair if he perceives financial tightening as a drag on financial progress heading into the following election cycle.

On the similar time, diplomatic progress seems to be calming world nerves. Information of a rare-earth commerce settlement between Washington and Beijing lifted equities worldwide this week. The pan-European STOXX 600 index rose 0.9% on the day and was poised for a 1.1% weekly achieve, whereas Asian markets surged to their highest ranges in additional than three years.

Regardless of Bitcoin’s rally, some analysts warning that its correlation to the greenback isn’t completely inverse. Knowledge from CryptoQuant exhibits that statistically vital adverse correlations under minus 0.6 have appeared on fewer than 30% of buying and selling days since 2021. At present, the 90-day rolling correlation between BTC and the DXY stands at –0.34, suggesting a unfastened however noticeable relationship.

Diverging Views on Bitcoin’s Outlook

Some see the greenback’s decline as a tailwind for Bitcoin. Digital asset supervisor Bitwise maintains a $200,000 year-end value goal for BTC, arguing that deliberate greenback weakening may push extra capital into various shops of worth.

Others stay skeptical. Whereas companies, establishments, and authorities entities are buying or holding Bitcoin now, on-chain exercise is nowhere close to 2021 ranges. Lively wallets, Lightning Community quantity, and transaction numbers have all declined. Bitcoin in 2025 just isn’t about on a regular basis people utilizing it for funds and even buying. As a substitute, we’re seeing a worth switch away from retail customers to establishments, with a key give attention to america.

Bitcoin’s value just isn’t essentially underneath menace from this on-chain apathy anymore. Nonetheless, if Bitcoin turns into nothing greater than a spot for the wealthiest firms and people in society to park their wealth, then are we actually doing justice to Satoshi’s legacy? ‘Quantity go up’ is nice for all those that purchased Bitcoin early, however ought to ‘freedom cash’ actually be hoarded by the billionaire class?

Excellent Questions

The evolving BTC–USD story leaves key questions unresolved:

What stage of DXY decline traditionally triggers giant Bitcoin strikes?
Are U.S. companies including Bitcoin to treasury reserves as a greenback hedge?
Might a pointy rebound within the greenback spark a Bitcoin sell-off?
How are stablecoin flows like USDT and USDC reflecting shifts in greenback sentiment?

For now, buyers can be watching carefully because the greenback’s trajectory and the Federal Reserve’s subsequent strikes form the narrative for Bitcoin within the second half of 2025.