Bitcoin Slides from $91K as Dollar Strengthens

Bitcoin nearly touched $91,000 on Wednesday, only to retreat sharply as the U.S. dollar regained strength.

This week’s sell-off, which saw BTC drop to around $77,424, appears driven more by dollar movements than crypto-specific factors. After a customary weekend dip, bitcoin had been rising through the week, aided by a weakening dollar.

The weekly peak came late Wednesday, following the Federal Reserve’s decision to keep interest rates steady and amid speculation over President Trump’s choice for Fed chair. At the same time, the dollar index (DXY) hit a multi-year low of 95.34. A weaker dollar is generally supportive for risk assets such as bitcoin, stocks, and commodities.

The dollar reversed course Thursday, prompting bitcoin to pull back from its high. Reports that Kevin Warsh, a hawkish contender, was likely to be nominated Fed chair sent the dollar higher and BTC to an overnight low near $81,000.

Bitcoin has since recovered to about $83,000, but continued dollar strength raises questions about the crypto rally’s sustainability.