Bitcoin Rises Toward $90K as Weak Dollar Fuels Crypto and Gold Rally

Bitcoin price climbed modestly on Tuesday, benefiting from renewed weakness in the U.S. dollar after comments from President Donald Trump helped push the greenback to multi-year lows. The flagship cryptocurrency advanced above $89,000 after spending much of the trading session below $88,000, reflecting improving sentiment across risk assets as the dollar index (DXY) slipped to its lowest level in nearly four years.

Speaking to reporters ahead of a scheduled speech in Iowa, President Trump said the U.S. dollar was “doing great” and downplayed concerns over its recent decline. Markets, however, reacted differently. The DXY fell further to around 95.80, extending losses from the past week and reinforcing a trend that has historically supported assets like bitcoin, gold, and equities. A weaker dollar often boosts bitcoin’s appeal as a hedge, helping drive renewed buying interest in the crypto market.

As a result, bitcoin rose roughly 2.2% over the past 24 hours to trade near $89,300, while Ethereum outperformed with a gain of nearly 4%, rebounding above the psychologically important $3,000 level. The broader crypto market also showed signs of stabilization after recent volatility, with investors closely watching macroeconomic signals and technical indicators for direction.

Gold mirrored the crypto rebound, resuming its upward trend after a brief pause. Following its dramatic rally above $5,000 per ounce earlier this month, the precious metal surged to a fresh record near $5,215, gaining about 1.8% on the session. The parallel strength in gold and bitcoin underscores how dollar weakness continues to reshape capital flows.

Despite ongoing short-term uncertainty, some analysts see encouraging technical signals for bitcoin. Research firm Bitcoin Vector, associated with Swissblock and analyst Willy Woo, highlighted a developing bullish divergence between bitcoin’s price and its relative strength index (RSI). Historically, similar patterns have preceded gains of around 10%. According to the analysts, bitcoin may be entering the early stages of a broader bullish reversal, with a potential move toward $95,000 increasingly likely if momentum continues to build.