Why Bitcoin Crashed: How the Dollar's Reversal Triggered BTC's Sharp Decline

Bitcoin (BTC) experienced a significant price drop this week, and the primary catalyst appears to be a sudden reversal in the US Dollar Index (DXY). Analysts are pointing to a clear inverse correlation: as the dollar found a solid bottom and began to rally, it marked the peak for Bitcoin's price. This dynamic highlights Bitcoin's continued sensitivity to traditional macroeconomic forces and dollar strength. The plunge underscores the crypto market's volatility and how key support levels for the dollar can translate into resistance tops for major cryptocurrencies like BTC. Investors are now closely watching Federal Reserve policy and dollar momentum for clues on Bitcoin's next directional move.