BTC Tentative, Dollar Index Hits 5-Week High as U.S. GDP Grew 3% in Second Quarter
Bitcoin
The dollar index (DXY), which gauges the greenback's value against major currencies, rose to 99.34, the highest since June 23, according to data source TradingView.
The dollar found a bid from the better-than-expected U.S. gross domestic product (GDP) data, which showed the economy expanded at a 3% annualized pace in the second quarter.
A sharp drop in imports drove the GDP higher. Meanwhile, consumer spending climbed 1.4% following first quarter's 0.5% in a sign of recovering domestic demand. Meanwhile, the gross domestic purchases price index rose 1.9%, down from 3.4% in Q1.
The upbeat GDP data likely reinforced expectations that the Fed will keep interest rates steady later Wednesday.
The DXY has stabilized in recent weeks, ending a sharp downtrend from January highs above 110.00. Some observers are worried that the stability could shake out dollar shorts, adding to the upside momentum in the global reserve currency and downward pressure in the crypto market.
"We see potential near-term risks emerging from overcrowded positioning in USD shorts. The consensus narrative for much of 2025 has revolved around a weaker Dollar, catalyzed by the ongoing Tariff War, but with the Dollar already down 10% year-to-date, we question how much further it can fall," Singapore-based QCP Capital's Market Insights team said.
"CFTC data shows traders extremely short USDJPY, a position that is not only consensus but also expensive to fund over time. In our view, the market is increasingly vulnerable to a short squeeze in the Dollar, which could force risk-off unwinds across equities, EM, and crypto alike," the team added.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Tether launches US-compliant stablecoin USAT to compete with Circle?
How to achieve 220x returns with a market-making bot on Hyperliquid?
For every $1,000 traded, a rebate of $0.03 is earned. It is precisely this seemingly small rebate that enabled the trader to grow from $6,800 to $1.5 million.

Korea's leading RWA project Piggycell, Piggy Night live event demonstrates popularity: Establishing a "usage-driven RWA" paradigm through data and accountability
Heavy rain can't dampen the enthusiasm.

CRP-1 Arrives: A Comprehensive Analysis of Hong Kong's New Crypto Asset Regulations, Reshaping the Crypto Landscape
The Hong Kong Monetary Authority has released a consultation paper, CRP-1 "Crypto Asset Classification," aiming to establish a regulatory framework that balances innovation and risk control. The paper clarifies the definition and classification of crypto assets, as well as regulatory requirements for financial institutions, aligning with international standards set by the BCBS. Summary generated by Mars AI. The accuracy and completeness of this summary, generated by the Mars AI model, are still in the process of iterative improvement.

Trending news
MoreCrypto prices
More








