US dollar strength hits highest since May 2025: Five things to know in Bitcoin this week
Cointelegraph 2026-06-22 10:13:05
Context: The US dollar index (DXY) has reached its highest level in over a year, surpassing 100, and posing a threat to the broader upside in crypto and risk assets, including Bitcoin, which is currently trading around $64,000. This development has significant implications for the cryptocurrency market, as the DXY is typically inversely correlated with crypto markets. The strength of the US dollar is attributed to ongoing macro hurdles, including inflation concerns and the US-Iran war.
Key Facts
- The US dollar index (DXY) has hit its highest level since May 2025, exceeding 100, according to data from TradingView, and potentially threatening the upside in crypto and risk assets.
- Bitcoin (BTC) is currently trading at around $64,000, with market participants eyeing potential catalysts, including July seasonality, which has historically been a positive month for the cryptocurrency.
- Trader Daan Crypto Trades noted that the DXY has broken the 100 level while being supported by its Daily 200MA/EMA, a significant technical development that could have implications for the broader market.
- The Personal Consumption Expenditures (PCE) index, the US Federal Reserve's preferred inflation gauge, is set to be released on Thursday, with markets expecting it to provide insight into the current inflation trend and potential interest rate decisions.
- Historically, July has been a relief rally month for Bitcoin, with Rekt Capital noting that "history suggests that whatever June does, July will do the opposite," potentially indicating a positive price movement for the cryptocurrency in the coming month.