- Bitcoin dips 2% to $109,156, testing key supports as dollar strength triggers risk-off sentiment.
- DXY climbs to 98.41 amid strong US jobs data, reversing earlier 2025 weakness and pressuring BTC and gold.
- Gold pauses at $3,770 after record highs, highlighting its vulnerability to renewed dollar dominance.
In the ever-volatile world of cryptocurrencies and commodities, a familiar foe has reared its head: the mighty US Dollar. Crypto analyst @CryptoTony__ recently shared a poignant chart in a tweet, highlighting how a pumping Dollar Index (DXY) often spells trouble for Bitcoin (BTC) and gold. “When the Dollar is pumping, we tend to see dips on assets such as BTC and GOLD. Take note,” he warned, pointing to a candlestick chart of DXY showing an upward channel with resistance at key levels around 100. His observation couldn’t be timelier, as late September 2025 sees the greenback flexing its muscles once more, dragging down risk-on assets in its wake.
The inverse relationship between the DXY and assets like Bitcoin and gold is no secret among seasoned traders. As the world’s reserve currency strengthens, it attracts capital flows toward safer havens, squeezing liquidity from speculative markets. This dynamic amplifies during periods of economic uncertainty or Fed policy shifts. Earlier this year, the dollar’s 10.7% decline fueled a golden era for both BTC and XAU, with Bitcoin shattering its all-time high above $124,000 in August and gold surging past $3,500 per ounce. But recent data paints a reversal. A robust US jobs report on September 25 propelled the DXY up 0.55% to 98.41, its highest in three weeks, as investors bet on fewer aggressive rate cuts from the Federal Reserve.
Bitcoin, the digital gold, felt the pinch immediately. Trading at $109,156 as of September 26—down 2% from the prior day and 6% from last week’s $116,580—the leading cryptocurrency is caught in a macro tug-of-war. The dip below $111,000 echoes Tony’s chart, where DXY’s bullish pullback aligns with BTC’s rejection at $117,500 resistance. Gold, too, is pausing its rally, hovering around $3,770 per ounce after touching record highs earlier in the month. Up 41.51% year-over-year, the yellow metal’s resilience as a hedge is tested when dollar strength signals economic stability, reducing its safe-haven appeal.
Why now? The Fed’s measured dovishness in its September meeting—revising 2025 inflation to 2.5% and tempering rate-cut expectations—has bolstered dollar confidence. With DXY support at 96.53 and potential upside to 100.61, further gains could extend the pressure on BTC toward $103,700 (its 200-day SMA) and gold below $3,500. Yet, this isn’t doom for bulls. Historical patterns show dollar peaks often precede reversals, especially if global uncertainties—like geopolitical tensions or election aftermaths—resurface. For crypto investors, Tony’s note is a call to vigilance: diversify, watch Fed dots, and remember that in forex’s zero-sum game, the dollar’s gain is BTC’s pain. As September’s “Red Month” unfolds, with $1.8 billion in liquidations already, the stage is set for a potential rebound if DXY falters. Bitcoin’s long-term uptrend remains intact, but short-term traders should brace for volatility. In this interconnected market, the dollar doesn’t just pump—it pulls everything in its orbit.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
