Bitcoin Dips; Dollar Strength Steers Crypto

[umair]

Bitcoin has edged down by around 0.1%, now trading near $104,894, roughly 7% below its all-time high from last month. This modest decline comes amid rising geopolitical tension between Israel and Iran, yet notably, Bitcoin has failed to gain traction as a "safe haven" during this period.

Other major altcoins have also slipped: Ethereum is down 0.7%, XRP has dropped 0.4%, and Solana has declined 1.7%—all signaling a muted market response. According to Alex Kuptsikevich, chief market analyst at FxPro, the key factor now isn't geopolitics, but the U.S. Dollar Index, which is weakening amid concerns over tariff-driven economic impacts. If the dollar continues to decline, Bitcoin may resume its strength as a macro hedge.

The U.S. Dollar Index is headed toward one of its weakest starts to a year on record, with tariffs weighing on economic growth projections. This reversal in dollar strength could mark a turning point for crypto markets—if the dollar continues to deteriorate, crypto assets may benefit.

Discussion Questions:

Do you view this dip in Bitcoin and altcoins as a market pause or the start of a deeper pullback?

How influential do you think the U.S. Dollar Index is on crypto performance in 2025?

Will a weakening dollar cause Bitcoin to regain its "digital gold" status or are other macro factors more important?