Bitcoin tumbles this week—its peak coincided with the dollar’s trough.

Bitcoin Retreats from $91K as Dollar Strength Gains Momentum

Bitcoin nearly reached $91,000 on Wednesday, but gains quickly faded as the U.S. dollar strengthened.

This week’s sell-off, with BTC falling to around $77,424, appears driven more by dollar movements than crypto-specific factors. After a typical weekend dip, bitcoin had been climbing through the week, supported by a declining dollar.

Bitcoin’s weekly peak came late Wednesday afternoon, following the Federal Reserve’s decision to hold interest rates steady and amid speculation over who President Trump might nominate as the next Fed chair. At the same time, the dollar index (DXY) hit a multi-year low of 95.34. A weaker dollar is traditionally supportive for risk assets like bitcoin, stocks, and commodities.

However, the dollar reversed course on Thursday, prompting bitcoin to retreat from its high. When reports emerged that Kevin Warsh—a hawkish Fed contender—was likely to be nominated, the dollar surged further and BTC dropped to an overnight low near $81,000.

Bitcoin has since bounced back to about $83,000, but the dollar’s persistent strength casts doubt on how sustainable the crypto rally may be.