Bitcoin prices declined following US President Donald Trump's address, raising concerns over further market drops due to a resurgent US dollar.
Bitcoin fell approximately 2% on Thursday, reaching lows near $66,200, as markets reacted to US-Iran tensions following an address by US President Donald Trump. The speech did not explicitly de-escalate the conflict, leading to heightened market agitation.
Stocks and gold also experienced declines, with oil prices rebounding to $104 per barrel. This reaction stemmed from Trump's comments, which included threats to Iran's power plants and references to ongoing war lasting weeks, as reported by trading resource The Kobeissi Letter.
US Dollar Index Rises
The US dollar index (DXY) strengthened, approaching the key 100 level and potentially heading toward 104, its highest since mid-2025. Analyst Aksel Kibar highlighted this anticipated breakout in his analysis shared on X, noting the stage is set for such a move after recent lows in January.
Crypto trader BitBull warned that a DXY expansion phase could lead to new lows for risk assets like Bitcoin and stocks. This forecast aligns with traditional inverse correlations between the US dollar and cryptocurrencies.
Market participants, including Keith Alan of Material Indicators, observed Bitcoin's price action forming a bear flag structure similar to early 2026 patterns. Alan stated that without directional momentum, Bitcoin risks following this bearish roadmap.
Broader Market Impacts
The address by Trump fueled uncertainty, with bonds melting down and oil markets reacting sharply. CoinTelegraph reported these developments based on trader insights and market data from sources like TradingView.
As risk assets face pressure, Bitcoin and related markets continue to monitor US dollar movements and geopolitical events for further signals. All information is based on analysis from CoinTelegraph and attributed trader comments.