The U.S. Dollar Index (DXY) is trading at 108.59, marking a 5.87% year-over-year increase.
Treasury yields have risen to 4.73%, their highest level since April 2024.
Bitcoin’s price has dropped to $94,921, with altcoins also experiencing declines.
Financial markets are getting tighter, with the U.S. Dollar Index (DXY) and U.S. Treasury yields hitting new highs. The DXY is at 108.59, up 5.87% over the past year, while the 10-year Treasury yield is up to 4.73%, its highest point since April 2024. This is putting pressure on risk assets, including cryptocurrencies.
Why a Strong Dollar Hurts Crypto
Higher Treasury yields make traditional financial instruments more attractive to investors. When bonds pay more, investors move their money away from riskier assets like cryptocurrencies. Also, a strong U.S. dollar makes alternative investments like Bitcoin and altcoins less appealing because it’s a safer place to store value.
Bitcoin’s price is down in the $94K range, a 3% drop. Ethereum is also down, trading around $3K, a 1.5% drop. It looks like these price movements are happening because of macroeconomic indicators, as traders react to the current economi…
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