February 3 News, just as Bitcoin attempts to stabilize after a decline, the US dollar index suddenly strengthens, becoming an important macro variable suppressing the crypto market. The US dollar index (DXY), which tracks the performance of the US dollar against major fiat currencies, rose about 1.5% in two days to 97.60, marking the largest two-day gain in nine months and putting short-term Bitcoin rebound prospects under further pressure.
In the past 24 hours, Bitcoin selling has noticeably slowed, with prices fluctuating between $75,000 and $80,000. Previously, BTC briefly dropped from $85,000 over the weekend to below $75,000. Some market participants had hoped for a rebound driven by the return of derivative funds above $80,000, but the sudden strength of the dollar has posed new challenges to the sustainability of the rally.
From a macro perspective, a stronger dollar generally raises the opportunity cost of holding dollar-denominated assets, including Bitcoin, gold, and commodities. At the same time, an upward move in DXY often accompanies tightening global liquidity, rising funding and credit costs, and suppressed market risk appetite, exerting systemic pressure on crypto assets.
This round of dollar rebound is widely believed to be related to market expectations of changes regarding the new Federal Reserve Chair. US President Trump has nominated Kevin Warsh to serve as Fed Chair. Known for his hawkish policy stance during his tenure as a Fed Governor from 2006 to 2011, investors generally believe he will not quickly shift toward aggressive easing.
ING, in its latest report, pointed out that with Warsh’s nomination, market sentiment regarding the continued devaluation of the dollar is fading, and the dollar’s resilience is re-emerging.
Meanwhile, upcoming US macroeconomic data may continue to strengthen the dollar. Markets expect the latest US non-farm payrolls to show about 80,000 new jobs added, with the unemployment rate remaining at 4.4%. If the data performs steadily, the dollar could continue to rebound, further squeezing Bitcoin.
Matthew Ryan, Chief Market Strategist at FXStreet, said that there is still room for the dollar to rise. Although Warsh has recently signaled support for rate cuts alongside Trump, his past policy style tends to be cautious and hawkish, which means the pace of monetary easing may be slower than market expectations.
Against the backdrop of a strong dollar and macroeconomic uncertainties, Bitcoin’s rebound window is narrowing, and the crypto market is likely to remain highly volatile in the short term.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Robert Kiyosaki warns of the risk of market collapse, prioritizing Bitcoin and real assets.
Robert Kiyosaki advocates for long-term investment in non-inflatable assets like oil, real estate, and cryptocurrencies amid market downturn concerns. He focuses on accumulating tangible assets, aiming to prosper during economic crises, and has recently resumed buying before a predicted market collapse in 2026.
TapChiBitcoin44m ago
HUT 8 builds a flexible data center for AI and Bitcoin
Hut 8 is implementing a modular infrastructure strategy to flexibly switch between Bitcoin mining and AI tasks, optimizing capital efficiency amidst data center expansion. This approach enhances profitability and mitigates dependence on volatile crypto markets, despite increasing operational complexity.
TapChiBitcoin52m ago
Glassnode: The accumulation structure for Bitcoin between $60,000 and $70,000 is taking shape, but the strength is far less than the previous highs.
According to Glassnode's report, the cost basis for short-term Bitcoin holders is at the lower range of $60,000-$70,000, indicating accumulation signals, but the strength is still insufficient. BTC has accumulated over 429,000 in this range, and this area is considered a high-confidence support zone. The options market indicates that short-term volatility may intensify.
動區BlockTempo57m ago
USD/JPY Hits 160 Again – Is a Bitcoin Crash Coming Next?
_USD/JPY crosses 160 for the first time since July 2024, raising attention from global investors._
_July 2024 BOJ intervention dropped USD/JPY 20 points, Bitcoin 30%, and S&P 500 10%._
_Strengthening yen raises borrowing costs for leveraged investors, affecting stocks and crypto
LiveBTCNews1h ago
The cryptocurrency fear index has dropped to 9, with the market continuing to maintain "extreme fear."
The current cryptocurrency market fear and greed index has dropped to 9, indicating extreme fear in the market, well below yesterday's 12 and last month's average of 13. This index consolidates multiple indicators to assess market sentiment.
BlockBeatNews2h ago
