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Coin Edition 2025-01-09 05:54:39

Strong U.S. Dollar and Treasury Yields Challenge Crypto Market Momentum

The U.S. Dollar Index (DXY) is trading at 108.59, marking a 5.87% year-over-year increase. Treasury yields have risen to 4.73%, their highest level since April 2024. Bitcoin’s price has dropped to $94,921, with altcoins also experiencing declines. Financial markets are getting tighter, with the U.S. Dollar Index (DXY) and U.S. Treasury yields hitting new highs. The DXY is at 108.59, up 5.87% over the past year, while the 10-year Treasury yield is up to 4.73%, its highest point since April 2024. This is putting pressure on risk assets, including cryptocurrencies. Why a Strong Dollar Hurts Crypto Higher Treasury yields make traditional financial instruments more attractive to investors. When bonds pay more, investors move their money away from riskier assets like cryptocurrencies. Also, a strong U.S. dollar makes alternative investments like Bitcoin and altcoins less appealing because it’s a safer place to store value. Bitcoin’s price is down in the $94K range , a 3% drop. Ethereum is also down, trading around $3K , a 1.5% drop. It looks like these price movements are happening because of macroeconomic indicators, as traders react to the current economi… The post Strong U.S. Dollar and Treasury Yields Challenge Crypto Market Momentum appeared first on Coin Edition .

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