Bitcoin Rallies As Us Dollar Strengthens: Are Crypto Traders...
Bitcoin reclaimed $86,000 as the US dollar strengthened, but one analyst warned the rally may be structurally weak.
Bitcoin (BTC) held above $86,000 on Monday after recovering steadily over the weekend from Friday’s flush to $80,600, its lowest price since April. The rebound came as traditional markets opened the week on a cautious footing, with the US Dollar Index (DXY) steady above 100, hovering near a six-month high.
The US Dollar Index held 100 after a blowout Nonfarm Payrolls (NFP) print of 119,000 against 53,000.
Bitcoin rebounded from $80,600 to above $86,000, but one analyst suggested that it could be deceptive strength.
The BTC/gold ratio implied structural underperformance despite the BTC/USD bounce in 2025.
Bitcoin’s move came as global markets digested fresh macroeconomic surprises, starting with the strong US nonfarm payrolls (NFP) report on Nov. 20, which showed 119,000 jobs added versus just 53,000 expected.
The hotter-than-forecast NFP injected a fresh layer of tension into the markets’ outlook. Typically, stronger jobs data dampens rate-cut expectations by signaling economic resilience, but this time the impact was mixed: the US Dollar Index (DXY) still held firm above 100, its highest level in six months, while traders recalibrated the Fed’s next steps.
On Friday, New York Federal Reserve President John Williams signaled that a near-term rate cut is still possible, arguing that labor-market softness, not inflation, poses the greater risk ahead.
However, markets appeared optimistic on Monday, with data from the CME group currently predicting a 78.9% probability of a 0.25% December cut, sharply higher than 44% a week prior. However, Boston Fed President Susan Collins said she remains undecided, highlighting the Fed’s deepening policy divide.
The dollar edged higher against the euro and sterling as European fiscal stress intensified, while the yen surrendered part of Friday’s gains despite fresh verbal intervention from Tokyo.
Source: CoinTelegraph
