Bitcoin Climbs Back Above $89,000 as U.S. Dollar Slumps
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Summary: Crypto rebounds alongside gold after the dollar tumbles to multi-year lows following remarks by the U.S. president.
Bitcoin roared back above the $89,000 mark on Tuesday as the U.S. dollar slid to its weakest level in nearly four years, with traders closely watching how macroeconomic signals and presidential remarks continue to shape sentiment in both currency and crypto markets.
The turnaround came after President Donald Trump — speaking to reporters ahead of a scheduled speech — shrugged off concerns about the weakening dollar, saying the currency was “doing great.” That apparent indifference sparked selling in the greenback, with the U.S. Dollar Index (DXY) dipping to around 95.80, a fresh low not seen since early 2022. The weaker dollar soon sloped over into other asset classes.
Bitcoin, which had spent much of the session languishing below $88,000, found renewed demand as the currency slide picked up pace, climbing toward roughly $89,300 by late trading. The move marked a rebound from a dip near $86,000 over the weekend and showed that even after recent volatility, buyers were willing to step back into the world’s biggest cryptocurrency amid broader macro shifts.
At the same time, gold surged to record levels, topping $5,200 per ounce, underscoring how some investors are flocking to traditional “hard assets” in the face of currency turbulence. Ethereum also saw gains, with its price pushing back above $3,000 — reflecting a broader, though cautious, lift across major digital assets.
The technical indicators are suggesting a potential recovery phase for Bitcoin, following recent sideways trading, according to the experts. Some research services have observed a positive divergence in momentum indicators, which could strengthen further gains if overall conditions stay favourable.
Markets continue to be unstable, responding to recent measures taken by central banks and governments. The Federal Reserve's interest rate debates, as well as ongoing concerns with fiscal policy and dollar strength, continue to influence how traders assess risk, particularly for cryptocurrencies.
Currently, the rise above $89,000 is being driven primarily by the declining dollar and investors seeking protection in gold and crypto. This highlights how interconnected global markets have changed. A single headline can quickly affect the stocks and digital currencies, often within hours.
