A stronger dollar historically tends to make dollar-denominated assets like bitcoin and gold expensive, leading to weakened demand in the short term. XRP led crypto losses on the second-last day of this year as a stronger dollar weighed down global currencies and assets including bitcoin. BTC has historically moved in the opposite direction of the U.S. Dollar Index (DXY), which gauges the greenback's exchange rate against major fiat currencies, including the euro.
Some, however, remain optimistic about long-term crypto policies helping bump the market despite the lack of rate cuts or a strong dollar. XRP led crypto losses on the second-last day of this year as a stronger dollar weighed down global currencies and assets including bitcoin, with Asian equity markets sliding lower on Monday. XRP sunk more than 5% in the past 24 hours, with dogecoin (DOGE), Solana’s SOL, ether (ETH) and BNB falling as much as 2%. Overall market capitalization fell 3%, while the broad-based CoinDesk 20 (CD20), an index tracking the largest tokens, minus stablecoins, shed 3.5%. US equities declined on Friday and as investors trimmed positions amid uncertainty heading into year-end. An Asia Pacific index reversed 5-day gains, while futures contracts on U.S. indexes S&P 500 and Nasdaq pointed to losses in the U.S. session as of Asian afternoon hours. BTC has historically moved in the opposite direction of the U.S. Dollar Index (DXY), which gauges the greenback's exchange rate against major fiat currencies, including the euro.largely comes ahead of President-elect Donald Trump stepping into office in late January, where he has promised several policies to help the economy in the coming years. When the dollar strengthens, dollar-denominated assets become more attractive compared to cryptocurrencies. Investors prefer traditional investments like U.S. Treasuries or stocks, which yield returns in a strong dollar environmen