What to know:
- The US dollar index (DXY) climbed back to 100, historically linked to Bitcoin’s decline, putting pressure on the crypto market amidst geopolitical tensions.
- Bitcoin’s chart is forming a bear flag pattern, indicating a lack of directional momentum, similar to the one at the beginning of 2026.
- Trump’s national address sparked risk-off fears, intensifying US-Iran tensions, and causing oil to jump past $100 per barrel, adding to market uncertainty.
Bitcoin dropped 2% to $66,200 on Thursday after rejecting $69,000. The move came as Trump delivered a national address that triggered risk-off fears. US-Iran tensions intensified, pulling crypto prices down with stocks and gold. The dollar index climbed back to 100, historically linked to the coin’s decline.
Market Uncertainty Grows
In addition, the Kobeissi Letter called the speech “incredibly puzzling,” adding to market uncertainty. Oil jumped past $100 per barrel, helping the dollar gain strength. Markets reacted quickly to the tone in Trump’s remarks. This shift in sentiment pushed digital assets lower. A stronger dollar usually means less value for bitcoin. Prices reflected immediate concern over geopolitical risks.
Also Read: Morgan Stanley BTC ETF Nears Launch Following SEC Filing Update
US Dollar Strength Threatening Crypto
The US dollar index (DXY) is set up to make a move, with trader Aksel Kibar pointing towards a 104 target, which is the highest level since April 2025. Crypto trader BitBull predicts an expansion phase for DXY, which might push the risk assets, including Bitcoin, to new lows.
BTC’s chart is reflecting a bear-flag support breakdown, similar to the one at the beginning of 2026. Keith Alan, cofounder of Material Indicators, remarks that BTC/USD is devoid of “directional momentum,” after following a very similar pattern to the previous bear flag structure. The strengthening US dollar continues to put pressure on the crypto market, which is also impacted by geopolitical tensions. The bear flag pattern of Bitcoin and the US dollar’s expected breakout represent hurdles for the cryptocurrency.
Also Read: BTC Outlook Shifts — Is a Major Market Reversal Starting?
Bitcoin Falls as US-Iran Tensions Escalate
BTC plunged 2% to $66,200 on Thursday, triggered by Trump’s national address that sparked risk-off fears and intensified US-Iran tensions. The dollar index climbed back to 100, historically linked to BTC’s decline, while oil jumped past $100 per barrel, adding to market uncertainty.
With the US dollar index (DXY) poised to reach 104, crypto trader BitBull predicts an expansion phase, potentially pushing risk assets like Bitcoin to new lows. Bitcoin’s chart is forming a bear flag pattern, indicating a lack of directional momentum.
Also Read: BTC Holds $68.5K as US Futures Rally and Oil Drops Below $100
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