Dollar’s Surge Amplifies Bitcoin Slide
Bitcoin’s price retreated sharply into the weekend, falling to $67,960 by Saturday morning and marking a 3.4% drop over the previous 24 hours. This downturn came as the U.S.
The greenback’s rally coincided with declines across major cryptocurrencies: Ether dropped 4.4% to $1,974, Solana fell 4% to $84.31, and Dogecoin lost 2.9% to $0.09. Even as Bitcoin had rallied up to $74,000 earlier in the week—a level it last touched in early February—the rebound proved short-lived, with the coin giving back about a third of those gains by Saturday.
The U.S. Dollar Index (DXY) climbed above 99 as the dollar posted its steepest weekly gain in a year.
Oil Spikes, Crypto Stumbles in Tandem
Rising geopolitical tensions between the United States and Iran have sent oil prices soaring and rattled digital asset markets. West Texas Intermediate (WTI) crude surged to nearly $90 per barrel—a multi-year high—after President Donald Trump declared there would be “no deal with Iran except UNCONDITIONAL SURRENDER.” The disruption of shipping through the Strait of Hormuz has kept oil elevated throughout the week.
As energy prices climbed more than 5% in just 24 hours, Bitcoin tumbled alongside tech stocks and other riskier investments. Nasdaq futures dropped by 1.8%, while crypto-related equities like MicroStrategy and Coinbase also traded lower before markets opened. The synchronized slump highlights how closely digital assets remain tied to broader macroeconomic shocks.
On paper, Bitcoin is often touted as a hedge against turmoil—but this week’s events showed otherwise.
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Iran Tensions Rattle Digital Markets
The ongoing standoff between Washington and Tehran has injected fresh volatility into global markets. With no diplomatic breakthrough in sight and military posturing intensifying, investors have grown wary of further escalation. According to coindesk.com, the conflict showed no signs of resolution this week, keeping both oil prices high and digital currencies under pressure.
This heightened anxiety was reflected not only in falling prices but also in market structure: Messari tracked a dramatic 415% spike in net stablecoin inflows over the week, reaching $1.7 billion as traders sought refuge in dollar-pegged tokens rather than volatile cryptocurrencies or equities.
43% of Bitcoin Holders in Red
A striking data point emerged amid the selloff: Glassnode reports that 43% of all bitcoin supply is now held at a loss relative to its purchase price. This means nearly half of holders are underwater after this week’s quick reversal from highs near $74,000 down below $68,000.
Despite this pain for recent buyers, Bitcoin still managed a modest gain of 3.6% over seven days—underscoring just how volatile swings have been since last weekend’s low near $64,000. Ether fared similarly; despite dropping below $2,000 on Friday, it remains up about 2.6% for the week.
Why it matters
The latest episode underscores how quickly sentiment can shift in crypto when global risks flare up. For everyday investors, these moves highlight that Bitcoin is not immune from traditional market forces—especially when safe-haven demand lifts the dollar or energy prices spike due to geopolitical shocks.
With U.S. payrolls declining by 92,000 jobs in February and unemployment ticking up to 4.4%, hopes for an imminent Federal Reserve rate cut have faded fast; current odds stand at just 17% for April action. In this environment of tightening liquidity and rising uncertainty abroad, digital assets may continue facing turbulence until macro pressures ease or diplomatic progress emerges between Washington and Tehran.
What could still change
If the U.S. jobs report due at 13:30 UTC shows nonfarm payrolls dropping below the forecasted 59,000 or the unemployment rate rising above 4.3%, bitcoin could see further immediate price movement as traders react to the labor market data.