Bitcoin traders brace for volatility as US dollar hits highest point since mid-2025

Bitcoin traders brace for volatility as US dollar hits highest point since mid-2025

Bitcoin faces renewed pressure as it drops 2% to around $66,200, influenced by geopolitical tensions and a strengthening US dollar, signaling potential new lows ahead.

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Bitcoin (BTC) experienced a decline of 2% on Thursday, dropping to approximately $66,200 as it faced renewed pressure amid geopolitical tensions. This downturn coincided with US President Donald Trump addressing the nation regarding the ongoing conflict with Iran, which has unsettled financial markets.

The US dollar index (DXY) showed signs of strength, rebounding to the 100 level and indicating a potential breakout that could lead to further declines in risk assets, including Bitcoin. Analysts suggest that the DXY may rise to 104, marking its highest point since April 2025.

Market reactions to Trump's remarks included a drop in stocks and gold, with oil prices climbing back over $104 per barrel. The geopolitical landscape appears to be fueling fears of an escalating conflict, as traders anticipate that the situation may worsen rather than stabilize.

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