Bitcoin Slips as US Dollar Rises: Crypto Market Faces Profit-Taking and Volatility

Bitcoin Slips as US Dollar Rises: Crypto Market Faces Profit-Taking and Volatility

October 9, 2025

Bitcoin price slipped sharply on Wednesday, falling 1.4% in 24 hours to $122,494. This trimmed its weekly gain to just 3.3%, according to CoinMarketCap. What caused this fall? The US dollar got stronger, with the US Dollar Index climbing 0.3% to its highest point since early August. A stronger dollar usually hits riskier assets like cryptocurrencies hard. Ethereum (ETH) fell 4.3% to about $2,950, XRP slid 3.6% to $0.53, and Solana (SOL) dropped 4% to around $157. But wait, Binance Coin (BNB) broke this downtrend by rising 2.4%, and it’s up nearly 50% in the last month! So, not everything is gloomy. Why is this happening? Analysts say it’s a “debasement trade unwind.” Earlier, investors saw Bitcoin and gold as shields against rising inflation and currency problems—they rushed in to protect their money. Now the dollar has bounced back, and some investors are booking profits. This means selling their crypto gains, which pushes prices down. The greenback’s strength comes as the Federal Reserve hints it might keep interest rates higher for longer because of strong US economic data. Meanwhile, gold stayed close to a record $4,000 an ounce, and Bitcoin has gained over 40% this year, beating big stock indexes like the S&P 500 and Nasdaq. How is the rest of the crypto market doing? Not so great. Ethereum, XRP, and Solana are all down, while smaller coins follow the drop. Trade volumes are slightly lower, too. But corrections like this are normal. Experts say it’s a natural pause after a thrilling rally, not the end of the party. Big players still show interest; record money is coming into crypto ETFs, showing strong faith from institutions. Why does the US dollar matter so much? A strong dollar makes risky dollars-based assets like Bitcoin less attractive, especially to investors holding other currencies. And it lowers the charm of the “debasement trade,” where people buy gold and crypto to fight currency weakness. Speaking of gold, both it and Bitcoin are popular as alternatives to cash when inflation or government debts worry investors. Gold’s recent highs and Bitcoin’s peak near $125,000 last week show this clearly. Can Bitcoin still be a safe bet? Despite recent dips, many see Bitcoin as a good hedge against inflation because it’s limited in supply and independent from governments. More financial firms are adopting it, treating Bitcoin as a real investment. So, the long-term outlook remains bright. What’s next for Bitcoin? Traders watch closely whether it can hold above $120,000. If it falls below, more selling might come. But if the dollar weakens again, Bitcoin could blast off once more. For now, experts expect it to stay between $120,000 and $128,000 as markets await important Federal Reserve minutes and inflation reports this month. Is the crypto rally over? Not at all! Crypto markets love to swing. Pullbacks happen all the time and often lead to new growth. Patience is key. Investors should keep calm, avoid panic, and look at the bigger picture. The crypto world is full of surprises, but its long-term promise still shines bright.

Read More at Economictimes

Tags: Bitcoin price, Cryptocurrency market, Us dollar strength, Ethereum, Binance coin, Crypto volatility,

Piyush Shukla

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