Bitcoin traders have set an ambitious short-term price target of $80,000, as the US Dollar Index (DXY) continues to reach new highs. This unexpected surge in the dollar has affected crypto markets, pushing Bitcoin to new lows for 2025. The increase in US Treasury yields, with the 10-year note reaching 4.7% and the 30-year note hitting 4.93%, reflects concerns over potential heightened inflation and increased deficits under the incoming Trump administration, signaling broader economic uncertainties.
The strengthening dollar has negatively impacted Bitcoin prices, with the cryptocurrency dropping to an intra-day low of $92,500. Analysts caution that Bitcoin may face further declines if the $90,000 support level falters. Industry experts like Biyond co-founder Burkan Beyli predict that if Bitcoin dips below $94,000, it could drop to $81,000 within weeks. Crypto analyst Jamie Coutts, however, attributes the dollar’s recent rally as less significant compared to potential liquidity boosts and pro-crypto policies expected from the new administration.
Despite these challenges, the market remains focused on upcoming economic indicators, such as the Consumer Price Index (CPI) report, which could influence short-term trading dynamics. While the immediate outlook appears bearish, there is a cautious optimism that the dollar will eventually correct, paving the way for a potential bullish phase for Bitcoin in the following months.
