Bitcoin nearly loses $59K as DXY surges: Are traders bracing for more pain?
Bitcoin fell to about $59,060 even as oil prices dropped sharply, because easing inflation fears and a stronger US dollar weighed on demand for scarce assets. The dollar hit a 13-month high versus a currency basket, a move that often pressures Bitcoin. Gold also slipped below $4,000 and Brent crude fell under $74, signaling reduced inflation concerns and less appeal for hedges. Higher-for-longer interest-rate expectations remained in focus after US jobless claims fell, showing the economy is still resilient. US M2 money supply rose to $23.05 trillion in May, but near term, investors continue favoring fixed income and AI-related equities over Bitcoin. Sentiment was also hurt by weaker Bitcoin accumulation from Strategy, which bought only 520 BTC in the latest week, its smallest weekly purchase in 18 months. Heavy spot Bitcoin ETF outflows and Strategy’s stock trading below its Bitcoin purchase cost added pressure, leaving more downside possible below $59,000.
