Bitcoin Holds Firm Near $80K as Dollar Strength Threatens Rally

Bitcoin is showing notable resilience despite mounting pressure across global financial markets, with rising oil prices, surging bond yields and falling equities failing to trigger a deeper cryptocurrency selloff.

WTI crude oil futures climbed above $90 a barrel and were up nearly 9% for the week, according to TradingView data. Higher energy prices could fuel inflation and reduce the Federal Reserve’s ability to cut interest rates, creating another potential headwind for risk assets.

Government bond yields have also risen sharply amid growing fiscal concerns. The U.S. 10-year Treasury yield jumped 10 basis points to 4.81%, its highest level since 2023. Elevated yields increase borrowing costs and tighten financial conditions, potentially discouraging investment and risk-taking.

Traditional markets have reacted negatively. The S&P 500 fell for a third consecutive session on Monday, touching a four-week low, while Asian equities declined as higher oil prices raised concerns for energy-importing economies. Gold has also suffered a steep correction, sliding from around $4,700 an ounce to $4,300 in less than a week.

Bitcoin, however, has remained relatively stable. After falling 3% on Friday to just below $77,000, BTC has largely traded between $76,000 and $80,000, showing limited follow-through selling.

The cryptocurrency’s ability to withstand unfavorable macroeconomic conditions could strengthen the bullish case. One explanation is that rising Treasury yields are being driven primarily by fiscal concerns rather than stronger economic growth, potentially increasing demand for alternative hard assets such as Bitcoin that operate outside the traditional fiat system.

Still, the U.S. Dollar Index could test Bitcoin’s resilience. The DXY is attempting to build on last week’s nearly 1% gain and recently stood around 99.67.

Technical charts show the Dollar Index approaching a key long-term bullish trendline extending from its 2011 lows. A rebound from this support could strengthen demand for the greenback.

That would potentially pressure Bitcoin, which has historically tended to move inversely to the U.S. dollar. With traders closely watching the DXY trendline, a sustained dollar recovery could become the next major challenge for BTC’s attempt to hold the $76,000-$80,000 range.