Bitcoin has fallen to a new low, reaching its lowest levels since 2025, as US Treasury yields rise and the Dollar Index (DXY) strengthens. These developments have forced crypto analysts to reconsider their short-term price expectations.
Crypto markets fell for the second day in a row as the Dollar Index reached new highs and investors remained uncertain about the Federal Reserve's future monetary policy.
Starting the week with a decline, DXY caused Bitcoin to rise to $102,400 for a short time. However, DXY reversed direction and rose to the level of 109.
The increase in US Treasury yields also had a negative impact on the markets. In particular, the 10-year bond yield rose to 4.7% and the 30-year bond yield rose to 4.93%. This increase increased market participants' concerns that inflation would remain at high levels.
This concern has also been fueled by expectations that the new government’s expansionary economic policies could further increase budget deficits, which could lead to higher interest rates on long-term U.S. debt instruments.
The DXY has seen a negative impact on the Bitcoin price. At the time of writing, Bitcoin was trading at $94,000. Analysts are warning that if the $90,000 support level is broken, the price could fall further in the short term.
Jamie Coutts, chief crypto analyst at Real Vision, noted that the current strength in DXY may be less effective in the long term. Coutts predicts that the liquidity increase and crypto-friendly policies of the incoming Trump administration could have positive effects for Bitcoin.