The Strong Dollar Weighs on the Crypto Market…
As the US Dollar reaches new heights, the crypto market drastically collapses. Bitcoin, Ethereum, Solana, and XRP suffer heavy losses despite an optimistic tech environment… Why?
In Brief
- The Dollar strengthens after the Fed minutes and geopolitical tensions, reducing overall liquidity and weighing on the crypto market.
- Bitcoin, Ethereum, Solana, and XRP fall despite stable equity markets, revealing their vulnerability to a dominant Dollar.
- Bitcoin struggles to play its role as digital gold against the strength of the Dollar, reigniting the debate about its ability to withstand macroeconomic pressures.
The Dollar, Undisputed King of Financial Markets in 2026
The US Dollar dominates the markets in February 2026. The recently published Fed minutes confirm no interest rate cuts, thus strengthening the currency. Moreover, geopolitical tensions, especially between the United States and Iran, amplify this trend. Accordingly, the DXY index measuring the Dollar’s strength is steadily rising.
This upward movement negatively impacts the crypto market, as a strong Dollar means international investors must spend more to acquire digital assets! This reduces demand and causes prices to fall, as evidenced by recent drops in Bitcoin and Ethereum.
Crypto in Free Fall: The Domino Effect of a Strong Dollar
Cryptocurrencies are hit hard by the strength of the Dollar. Indeed, Bitcoin dropped 1.7% in 24 hours, trading around 66,700 dollars. Ethereum, XRP, and Solana follow the same trend, with respective declines of 2%, 5%, and 4%. These figures contrast with the stability of Asian equity and tech markets, which recorded gains.
Why? Because investors seeking safety turn to traditional assets. Cryptocurrencies, seen as risky, struggle to attract capital. Recent rebounds are quickly sold off due to weak demand. This dynamic creates a vicious circle where each rise of the Dollar increases pressure on cryptos.
Bitcoin, the Collateral Victim of Dollar Strength?
Bitcoin, often portrayed as digital gold, does not fulfill its safe-haven role against the Dollar’s power. While gold absorbs geopolitical and economic uncertainty, BTC suffers heavily from the pressure of the US currency. However, a return of risk appetite, stabilization of ETFs, or regulatory clarity could reverse the trend and cause a rebound.
But as long as the Dollar remains strong, pressure will persist. Investors watch closely. Some see this crisis as an opportunity for Bitcoin to prove its resilience. Others, more skeptical, believe this crash reveals cryptocurrencies’ limits against traditional economic uncertainties.
The strong Dollar stifles cryptos in 2026, revealing their vulnerability to macroeconomic tensions. Bitcoin and other digital assets struggle to stabilize despite occasional rebounds. In your opinion, can cryptocurrencies overcome this pressure and regain investor confidence?
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.