Bitcoin traded near $91,000 on Wednesday as the dollar began to strengthen following the Federal Reserve’s decision to hold rates and ongoing focus on who might lead the central bank next. The move coincided with the dollar index dipping to around 95.34, its multi-year low, helping Bitcoin approach the weekly high near 91,000.
However, despite warnings that a break below 96 could signal further dollar weakness, the market turned the other way as the dollar resumed its ascent and Bitcoin retreated from the 91,000 level. By Thursday, news that a former Fed governor Kevin Warsh would be named chair sent the dollar sharply higher again, and BTC fell to a low near 81,000 before rebounding to roughly 83,000. Since then, the dollar’s continued strength has raised questions about whether the crypto rally can sustain its gains. Investors will watch whether crypto bulls regain momentum as macro moves evolve.
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