Bitcoin is holding firm near historic highs as the U.S. dollar tumbles to its weakest level in more than three years, spotlighting the fragile dance between crypto prices and the world\u2019s dominant reserve currency.<\/p>\n
As of Friday morning in London, Bitcoin<\/a> traded at $107,639<\/strong>, up around 9.8% since the start of the year and 6% over the last week. The world\u2019s largest cryptocurrency remains just shy of its all-time high of $111,900<\/strong>\u00a0set on May 21. Meanwhile, the U.S. Dollar Index (DXY)<\/strong> has slipped<\/a> to 97.10<\/strong>, marking a 10% decline year-to-date<\/strong> and fueling speculation about how much further the dollar could fall.<\/p>\n The dollar\u2019s slide comes amid a swirl of macroeconomic forces: expectations of looser Federal Reserve policy, signs of easing trade tensions between the U.S. and China, and growing worries that political pressures could undermine the Fed\u2019s independence.<\/p>\n Analysts say those dynamics are reviving Bitcoin\u2019s appeal as a hedge against dollar debasement and traditional financial volatility.<\/p>\n Vasileios Gkionakis, senior economist and strategist at Aviva Investors, in comments to Reuters, said,<\/p>\n \u201cI don\u2019t think it\u2019s just the repricing of the Fed. There\u2019s a broader issue here of some tarnishing of U.S. exceptionalism.”<\/p><\/blockquote>\n