Bitcoin and Ethereum prices rose as the U.S. dollar fell to four-year lows, prompting investors to shift toward alternative assets amid currency weakness and inflation concerns.
Bitcoin surged above $89,000 and Ethereum gained over 3% past $3,000 after the U.S. dollar index dropped to 95.92, its lowest since 2022. The decline followed President Donald Trump’s comments downplaying the currency’s slide, which traders interpreted as a sign of further weakness. Bloomberg reported the Dollar Spot Index recorded its sharpest four-day decline since April 2025. Analysts attribute the dollar’s retreat to large budget deficits, Federal Reserve policy challenges, steady bond supply, and FX hedging. The sell-off has driven some investors toward digital assets and precious metals, with market watchers noting potential for further crypto price gains if the dollar remains weak.