Bitcoin (BTC) temporarily traded below $ 118,000 after a better-from-from US development data, pushed the dollar index to a five-week high.
The dollar index, which detects the value of greenback against major currencies, increased to the most from 99.34 since June 23, according to the data source tradingview.
The dollar received a bid from the better-than-than-than-one-from US GDP (GDP) data, which expanded the economy at a 3% annual pace in the second quarter.
A sharp decline in imports made GDP higher. Meanwhile, consumer expenses climbed 1.4% after 0.5% of the first quarter in the indication of recovering domestic demand. Meanwhile, gross domestic procurement price index increased by 1.9%, below 3.4% in Q1.
Encouraged GDP data strengthened hopes that the Fed would keep the interest rates stable later on Wednesday.
DXY has stabilized in recent weeks, which eliminates a sharp downtrend from the height of January 110.00 above 110.00. Some observers are worried that stability may shake dollars shorts, putting upside down speed in the global reserve currency and pressure in the crypto market.
“We look at the potential close proximity rising from the congested situation in the USD shorts. For most parts of 2025, the story unanimously revolves around a weak dollar, which is catalyzed by the ongoing tariff war, but already with the dollar, we already ask how much ahead of the Capital,” With the market.
“CFTC data shows very little usdjpy to traders, a situation that is not only a consensus, but also expensive to fund over time. In our view, the market is rapidly unsafe for a small squeeze in the dollar, which can close the same risk of equities, EM and crypto,” the team said.
