Bitcoin rallies past $89K as dollar weakens after Trump comments
Bitcoin climbed above $89,000 after U.S. dollar weakness intensified following President Donald Trump’s public remarks that he was not concerned about recent dollar declines. The U.S. dollar index (DXY) fell to about 95.80, its weakest level in roughly four years. BTC rose from below $88,000 to about $89,300 (up ~2.2% in 24 hours). Ether (ETH) bounced above $3,000 (+3.9%). Gold extended gains to a record near $5,215 per ounce (+1.8%) on the weaker dollar. Technical analysis from Bitcoin Vector (Swissblock/Willy Woo) noted a bullish divergence between BTC price and its RSI, suggesting a potential short-term return to roughly $95,000 based on historical similar setups (around 10% returns). Market context: crypto’s short-term outlook still faces challenges, but dollar depreciation, rising gold and risk-on flows have supported a near-term crypto uplift.
Bullish
The news is bullish for crypto in the short to medium term. A materially weaker U.S. dollar (DXY ~95.8) typically supports risk assets and hard assets priced in dollars — bitcoin and gold in particular. The immediate price reaction (BTC +~2.2% to >$89K; ETH >$3K) shows positive market sensitivity to FX moves and macro commentary. Additionally, a technical bullish divergence in BTC’s RSI flagged by Bitcoin Vector increases the probability of a short-term continuation toward the cited $95K target (historical setups ~10% returns). Similar episodes — e.g., prior dollar drawdowns or Fed-driven USD weakness — have coincided with bitcoin rallies as traders reallocate into dollar-hedged or scarce assets. However, risks remain: macro surprises (rate decisions, fiscal news), potential profit-taking after a rapid run, and structural crypto-specific headwinds can reverse gains. For traders: expect higher short-term beta to macro and FX headlines; consider scaled entries, manage leverage, and use stops near recent support (~$88K) while targeting resistance zones up to ~$95K. Longer term, sustained dollar weakness could underpin further appreciation, but that depends on policy and macro stability.