Global Crypto Market Update: Stronger Dollar Weighs on Bitcoin and Gold
Tehran - BORNA - Bitcoin slipped 0.77 percent over the past 24 hours to trade at $111,730.05, extending a 4.73 percent decline over the past week. Ethereum dropped 3.58 percent to $4,023.80, with a steeper weekly loss of 12.3 percent. Other leading altcoins also retreated: Solana fell 2.21 percent to $205.27, Ripple edged down to $2.85, while Cardano lost 2.34 percent to settle at $0.7955. Dogecoin tumbled nearly 2 percent to $0.2347, deepening its weekly loss to over 16 percent.
Meanwhile, stablecoins such as Tether ($1.00) and USD Coin ($0.9997) remained virtually unchanged, underscoring their role as safe havens during heightened volatility. Binance Coin was the rare exception, inching up 0.47 percent over the past week to $995.07 despite a daily decline of 1.78 percent.
Analysts note that signals from the Federal Reserve have created conflicting currents for risk assets. According to Singapore-based QCP Capital, last week’s quarter-point rate cut sparked a broad sell-off in long-term U.S. Treasuries, lifting yields and strengthening the dollar. The rebound in the greenback has, in turn, limited rallies across stocks, crypto, and even gold.
Jerome Powell, the Fed Chair, emphasized a cautious approach in upcoming policy decisions, which reassured the dollar index while putting pressure on speculative assets. Market strategists suggest that Thursday’s U.S. jobless claims and the August Personal Consumption Expenditures (PCE) report could be decisive in shaping expectations for future rate cuts.
Gold also slipped from record highs, trading near $3,762 per ounce, while U.S. futures retreated 0.6 percent to $3,794.50. Silver held at $44.02, platinum was steady at $1,478.15, and palladium eased 0.4 percent to $1,214.78.
Market Commentary
Derick Lim, head of research at Caladan, noted that gold’s retreat from record levels resembled a recalibration of hedging strategies. “While some flows may rotate into Bitcoin, continued dollar strength will blunt that impact,” he said, pointing to core inflation near 3 percent as a key driver of Fed caution.
Ryan McMillan, chief investment officer at crypto fund Merkle Tree, stressed that “the Fed’s tempered stance has reassured markets, with calmer bond volatility showing that investors are aligned with the central bank.” He forecast that this macro backdrop could help Bitcoin break out of its September stagnation and potentially reach new highs in the fourth quarter.
For now, the crypto market remains at the mercy of the dollar’s trajectory. Should the Fed reinforce expectations of multiple rate cuts by year-end, digital assets and gold could rebound sharply. However, sustained dollar strength risks deepening the current correction across both crypto and commodities.
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