Bitcoin falls under $68,000 as the U.S. dollar records its biggest weekly jump in a year

Bitcoin Slips Toward $68K as Dollar Strength and Market Pressure Weigh on Crypto

Most major cryptocurrencies erased their gains from Friday as the market weakened heading into the weekend. Solana dropped 4%, ether declined 4.4%, and new data from Glassnode shows that roughly 43% of bitcoin’s circulating supply is now held at a loss.

Bitcoin (BTC) fell to around $67,960 by Saturday morning, marking a 3.4% decline over the past 24 hours and pulling back sharply from the highs seen earlier in the week. The price action follows a pattern that has become increasingly familiar in recent months, with late-week selling pushing prices toward the lower end of their trading range ahead of the weekend.

Large-cap cryptocurrencies suffered even steeper losses. Ether slid 4.4% to about $1,974, while solana dropped 4% to $84.31. Dogecoin fell 2.9% to $0.09, BNB declined 2.6% to $627, and XRP slipped 2.2% to $1.37.

Despite the recent pullback, the broader weekly performance remains somewhat positive. Bitcoin is still up roughly 3.6% over the past seven days, while ether has gained about 2.6%. BNB also posted a 2.1% weekly increase. The strong rally earlier in the week helped markets absorb the initial shock from geopolitical tensions, though the late-week sell-off trimmed those gains.

Meanwhile, the U.S. dollar recorded its largest weekly increase in a year. The currency strengthened as investors priced in higher energy costs, persistent inflation pressures, and the possibility that the Federal Reserve may delay interest rate cuts.

According to Björn Schmidtke, CEO of Aurelion, the shift in investor sentiment reflects growing concerns about global instability.

“As tensions escalated in the Middle East last week, investors quickly moved into the safety of the U.S. dollar,” Schmidtke said in an email to CoinDesk. “Markets are now pricing in higher energy prices and renewed inflation risks, which could delay potential rate cuts by the Federal Reserve.”

For bitcoin and other crypto assets — which are often treated as risk-sensitive investments — a stronger dollar can create additional pressure since their prices are typically measured against the U.S. currency.

On-chain metrics also suggest the market remains fragile beneath the surface. Data from Glassnode indicates that 43% of bitcoin’s total supply is currently held at a loss, creating a significant supply overhang.

As prices recover, many of these investors may choose to sell once they approach their break-even levels, potentially creating resistance during rallies. This dynamic likely contributed to bitcoin’s failure to maintain its surge toward $74,000 earlier in the week, as selling pressure emerged whenever the price moved higher.

One positive development came from stablecoin activity. Data from Messari shows net stablecoin inflows jumped 415% over the past week, reaching $1.7 billion, while daily transfer volumes increased nearly 10%.

These inflows may represent capital waiting to be deployed in the crypto market, suggesting that retail participation has not completely disappeared despite the current risk-off sentiment. Whether this liquidity eventually flows into bitcoin or remains sidelined in anticipation of lower prices remains uncertain.

Geopolitical tensions continue to shape the market environment. The conflict between the United States and Iran showed little sign of easing during the week. Oil prices remain elevated, and disruptions in the Strait of Hormuz continue to threaten global energy supply.

Combined with a strong dollar, persistent inflation concerns, and expectations that interest rate cuts may be delayed, the macroeconomic backdrop remains challenging for risk assets.

Although bitcoin briefly reached $74,000 earlier in the week, the move ultimately resulted in another round-trip within the same trading range. The journey from roughly $68,000 up to $74,000 and back again highlights a market still struggling to break decisively in either direction.