Bitcoin Bulls Charge as Dollar Tumbles to 3-Year Lows—Crypto’s Revenge Tour Begins

Digital gold outshines fiat as Bitcoin rallies against a crumbling dollar.

The crypto market smells blood—and it's not just another altseason pump.

When the USD weakens, Bitcoin flexes. This isn't 2021's reckless euphoria; it's a calculated decoupling from traditional finance's sinking ship. Hedge funds might still be shorting, but retail traders are stacking sats like there's no tomorrow.

Funny how Wall Street's 'safe haven' currency now needs its own lifeline while BTC quietly eats another zero. Maybe the real inflation hedge was the friends we made on-chain all along.

TLDR

• US Dollar Index hits lowest level since February 2022 at 97.50, down 1.54% over past month
• Bitcoin recovers to $107,930 after briefly dropping below $100,000 on Sunday
• Dollar failed to gain typical safe-haven strength during recent Iran-Israel tensions
• Analysts compare current environment to 2002-2008 dollar weakness that boosted emerging markets
• Crypto positioned as today’s emerging market trade attracting capital flows

The US Dollar Index has dropped to its lowest point in nearly three years while Bitcoin recovered above $107,000 following a brief dip below the key psychological level. The dollar’s weakness comes despite recent geopolitical tensions that typically drive investors toward safe-haven assets.

The DXY, which measures the dollar against major world currencies, traded at 97.50 at publication time. This marks the lowest level since February 2022, with the index down 1.54% over the past month.

Macroeconomist Lyn Alden noted the dollar’s unusual behavior during recent market stress. “The dollar index is dabbling in new cycle lows today,” Alden posted Wednesday. “Barely got any flight-to-safety bid in the past couple weeks, either.”

The dollar index is dabbling in new cycle lows today.

Barely got any flight-to-safety bid in the past couple weeks, either. https://t.co/4kYeJhDDQn pic.twitter.com/cgaC9cDceA

— Lyn Alden (@LynAldenContact) June 25, 2025

Traditional Safe-Haven Pattern Breaks Down

Market participants typically expect capital to FLOW from riskier assets like cryptocurrencies into safer options during geopolitical conflicts. The dollar usually benefits from this flight-to-safety behavior. However, this pattern appears to be breaking down.

The current dollar level sits NEAR where it traded on June 13 when tensions first escalated after Israeli airstrikes on Iran. In October 2024, a major Iranian missile strike on Israeli sites caused the DXY to spike 2.67% over that month.

Real Vision crypto analyst Jamie Coutts described the current environment simply. “Fiat is fading,” Coutts said, referring to government-issued currencies like the dollar.

If you remember 2002–2008, the last major dollar depreciation lit a fire under EM equities and commodities. EM outperformed DM by 3x as capital chased high-growth, young economies — giving rise to BRICS.

Crypto is today’s EM. Capital is moving where the energy is. Fiat is… pic.twitter.com/6eI4CZZaIm

— Jamie Coutts CMT (@Jamie1Coutts) June 25, 2025

Bitcoin experienced significant volatility during the recent conflict period. On Sunday, the cryptocurrency briefly fell below $100,000 for the first time since early May. This marked a psychological break of a key support level that many traders were watching.

Bitcoin Recovery Gains Momentum

Since President Donald Trump’s ceasefire took effect Monday, bitcoin has staged a strong recovery. The cryptocurrency traded at $107,930 at publication time according to CoinMarketCap data. This represents a bounce back toward its all-time high of $111,970.

Crypto analyst Matthew Hyland said “the bulls are in control” of Bitcoin’s price action. Other analysts highlighted Bitcoin’s resilience despite risk-off market conditions that typically hurt cryptocurrency prices.

“Bitcoin has broken two 2-week downtrends over the past month,” crypto analyst Rekt Capital posted Wednesday. This technical analysis suggests underlying strength in Bitcoin’s price structure.

The cryptocurrency remains down 0.29% over the past month despite the recent recovery. This relatively small decline contrasts with larger moves seen in traditional safe-haven assets.

Coutts drew parallels between current market conditions and the early 2000s dollar weakness cycle. “If you remember 2002–2008, the last major dollar depreciation lit a fire under EM equities and commodities,” he said.

During that period, emerging market stocks outperformed developed markets by a factor of three. Capital chased high-growth economies in what became known as the BRICS trade. “EM outperformed DM by 3x as capital chased high-growth, young economies — giving rise to BRICS,” Coutts explained.

He positioned cryptocurrency as the modern equivalent of that emerging market trade. “Crypto is today’s EM. Capital is moving where the energy is,” Coutts said. Bitcoin continues trading above $107,000 as the dollar remains near three-year lows.