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Bitcoin Plunges Below Critical 200-Day Average as Dollar Surges to 3-Month High
BTC's losses follow positive developments in U.S.-China trade relations.
Oct 30, 2025, 5:48 p.m.
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What to know:
- BTC has penetrated the critical 200-day SMA support.
- The dollar index has hit its highest since Aug. 1.
- BTC's losses follow positive developments in U.S.-China trade relations.
Bitcoin has broken below the critical 200-day simple moving average of $109,380, signaling potential weakness ahead as the dollar index (DXY) continues to gain momentum.
The breakdown may trigger more selling from chart-focused traders, potentially pushing bitcoin towards $100,000 or lower. The dollar index, which measures the U.S. dollar against major fiat currencies, climbed to 99.72 — its highest since August 1 — fueled by Federal Reserve Chair Jerome Powell's hawkish comments downplaying a December rate hike and the Bank of Japan's very dovish stance, which weakened the yen.
STORY CONTINUES BELOW
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Interestingly, bitcoin's decline comes despite a positive development in U.S.-China trade relations. President Donald Trump and Chinese President Xi Jinping reached an early agreement to cut tariffs — reducing U.S. tariffs on Chinese goods from 57% to 47% — and boost trade. The deal also includes Beijing's commitment to secure rare earth supplies, purchase U.S. soybeans, and crack down on fentanyl trafficking. Yet, this positive outcome failed to ignite a crypto rally, suggesting underlying demand weakness.
Other cryptocurrencies are also under pressure: XRP looked poised to confirm a "death cross" with its 50- and 200-day simple moving averages in coming days, while solana weakened despite strong initial uptake for Bitwise's SOL spot ETF.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
