With the U.S. dollar index (DXY) soaring to an 18-month high, Bitcoin's selling pressure is becoming more and more intense
At press time, the leading cryptocurrency is changing hands around $82,490, shedding 1.62% in the last 24 hours
Further, Bitcoin has shed 4.61% over the past week, and its market valuation sits near $1.65 trillion
The number of Bitcoin short positions being opened aggressively indicates low spot demand. At the same time, the spot market has not yet seen enough buying pressure to reverse the short positions
The 5-minute BTC/USDT trading chart above displays Bitcoin's move from above $84,200 to $82,460. With multiple lower highs and lower lows
As of the last update, the U.S. Dollar Index (DXY) - which tracks the value of the dollar against a basket of six major currencies - soared above 102.50 to hit its highest point since April 2025
The DXY's 15-minute trading chart displays an even more aggressive bullish outlook. From around 102.12, DXY reached 102.55. The pattern comprises higher highs and higher lows. The index saw a significant breakout above the key 102.50 psychological level
Increased oil prices are hurting major oil importers (especially Europe and Japan). That, in turn, is negatively impacting their currencies versus the dollar
Second, as a result of the Fed's increasingly hawkish monetary policy outlook, the greenback is getting a boost
In fact, on Monday, the president of the Cleveland Fed, Beth Hammack, said that a restrictive monetary policy was necessary to cool the increasingly broad inflationary problem
The U.S. CPI data set to be released on Wednesday is the next key catalyst. This report may have a significant bearing on what the market anticipates from the Fed in the next round of policy actions
Bitcoin's correlation with the dollar may not always be inverse, but a rising dollar trend makes it significantly harder for the Bitcoin bulls to get a strong footing
The most recent CoinGlass derivatives data is painting a picture of growing activity as Bitcoin's price falls
Over the past 24 hours, the trading volume in Bitcoin futures has stood at $43.55 billion
The total open interest of Bitcoin futures stands at $52.25 billion. Therefore, much of the leveraged positions are still out there
On the other hand, the total Bitcoin liquidations are at $54.76 million over the last 24 hours. Of this, $43.22 million are in long liquidations, and $11.54 million are in short liquidations
This means that nearly 79% of the total Bitcoin liquidations over the last 24 hours are the bullish players. In other words, it shows the struggle of the leveraged buyers
