Bitcoin is trading around critical demand levels after slipping below the $81,000 support zone, signaling growing pressure across the crypto market. The decline comes amid heightened macroeconomic uncertainty, as global investors react to escalating trade war tensions triggered by U.S. President Donald Trump’s aggressive tariff policies. As financial markets remain unsettled, risk assets like Bitcoin are bearing the brunt of the fear-driven selloff.
Despite signs that should traditionally support Bitcoin, such as a weakening U.S. Dollar Index (DXY), the crypto market continues to struggle. Crypto analyst Axel Adler shared key insights explaining this unusual divergence. According to Adler, when the DXY drops, it typically boosts Bitcoin by pushing investors toward higher-risk, higher-return assets. However, this time, that historical correlation has broken down.
“The impact of the DXY has essentially been offset by the ongoing trade war,” Adler noted. Even though the dollar is weakening, the geopolitical instability and uncertainty surrounding tariffs have overwhelmed investor appetite for crypto exposure.
As Bitcoin attempts to hold current demand zones, the market is watching closely to see whether renewed dollar weakness will eventually support crypto — or if trade tensions will continue to dominate the narrative and pressure prices lower.
Bitcoin Stalls at $79K As DXY Weakness Fails to Lift Prices
Bitcoin is currently trading around $79,000 after another stretch of heavy selling pressure and elevated volatility. The cryptocurrency market continues to suffer under the weight of global macroeconomic instability, particularly as tensions rise over U.S. trade policy. With Bitcoin now more than 30% down from its all-time high, many analysts believe it could take time for bullish momentum to return.
Much of the downward pressure is being attributed to growing uncertainty sparked by US President Donald Trump’s aggressive tariff policies. According to insights Adler, the U.S. Dollar Index (DXY) recently fell to 102.96 amid trade tensions. While a falling DXY typically signals strength for Bitcoin — as investors seek refuge in high-return, non-dollar-denominated assets — that correlation is notably absent this time.
Trump has denied rumors of pausing his tariffs but expressed openness to dialogue with trade partners. Treasury Secretary Scott Bessent revealed that nearly 70 countries have reached out for negotiations. Still, the situation escalated when Trump threatened an additional 50% tariff on Chinese goods. China quickly condemned the move as “blackmail” and vowed to retaliate.
Adler notes that despite the DXY weakening, the backdrop of geopolitical turmoil is overpowering any positive effect on Bitcoin. For now, fear and instability continue to dominate investor sentiment — and unless a resolution is reached soon, the pressure on BTC could persist in the weeks ahead.
Price Struggles Below $80K As Bears Maintain Control
Bitcoin is trading at $79,000 after failing to reclaim the key $80K resistance level, signaling continued weakness in the market. Bulls are under pressure, and the inability to hold or build momentum above current levels increases the risk of further downside. After a series of failed recovery attempts, sentiment remains fragile and the broader trend suggests that sellers are still in control.
The $81K mark is now a crucial level to watch. If bulls can reclaim and hold that price, it may trigger a short-term push toward higher resistance zones. However, without a decisive move above $81K, any bounce is likely to remain limited and vulnerable to renewed selling.
On the downside, the $75K support has become a last line of defense. A breakdown below that level could open the door to a deeper correction, potentially sending BTC toward the $70K mark or lower. This would further solidify the bearish thesis and confirm a prolonged corrective phase in Bitcoin’s current cycle.
With macroeconomic pressures and market uncertainty still weighing on investor sentiment, bulls need to step in quickly or risk losing key ground in the coming days.
Featured image from Dall-E, chart from TradingView
