As the US Dollar Index ( DXY ) soars to a 18-month high, the selling pressure on Bitcoin is becoming increasingly strong.
As of press time, the trading price of this leading cryptocurrency is around $82,490, which represents a decrease of 1.62% over the past 24 hours.
In addition, Bitcoin has fallen by 4.61% in the past week, with a market value of approximately $1.65 trillion.
The actively established short positions in Bitcoin indicate weak spot demand. At the same time, there has not been sufficient buying pressure in the spot market to reverse these short positions yet.
The 5-minute trading chart above BTC / USDT shows that the price of Bitcoin fell from above $84,200 to $82,460, with multiple lower highs and lower lows occurring during that period.
The US Dollar Index rose to a 18-month high
As of the latest update, the US Dollar Index ( DXY ), which tracks the value of the US dollar against six major currencies, has risen above 102.50, reaching its highest level since April 2025.
The 15-minute trading chart of DXY shows a stronger upward trend. The index rose from around 102.12 to 102.55, with higher highs and higher lows, and clearly broke through the key psychological barrier of 102.50.
Rising oil prices are harming major oil importers, especially Europe and Japan. This, in turn, has a negative impact on the exchange rates of these countries' currencies against the US dollar.
Secondly, due to the increasingly hawkish monetary policy prospects of the Federal Reserve, the US dollar has gained support.
In fact, on Monday, Cleveland Federal Reserve Chairman Beth Hammack stated that it is necessary to adopt restrictive monetary policies in order to cool down the growing inflation problem.
The U.S. CPI data, scheduled to be released on Wednesday, is the next key catalyst. This report could have a significant impact on market expectations regarding the Federal Reserve's next round of policy actions.
The correlation between Bitcoin and the US dollar is not always inverse, but a stronger US dollar makes it more difficult for Bitcoin bulls to gain a foothold.
Derivatives market issues a warning signal
The latest data from the CoinGlass derivatives shows that as the price of Bitcoin falls, market activity is increasing.
In the past 24 hours, the trading volume of Bitcoin futures reached 43.55 billion US dollars.
The total open interest in Bitcoin futures amounts to $52.25 billion, indicating that a large number of leveraged positions still exist.
On the other hand, in the past 24 hours, the total settlement amount for Bitcoin was 54.76 million US dollars. Of this, 43.22 million US dollars came from long positions being settled, and 11.54 million US dollars came from short positions being settled.
This means that in the past 24 hours, nearly 79% of the total Bitcoin liquidations came from the bullish side. In other words, this reflects the struggles of leveraged buyers.
