🔥 Dollar Slips to 4-Year Low as Markets React

The U.S. dollar has fallen to its lowest level in four years, sliding against major currencies as investors react to policy uncertainty and shifting rate expectations. Despite the drop, Trump brushed it off, saying the dollar is “doing great”, a signal markets read as tolerance for a weaker greenback.

As the dollar weakens, other assets are catching a bid. Major currencies are moving higher, and Bitcoin has also gained momentum, benefiting from the dollar’s slide.

👉 Is a weaker dollar bullish for crypto and risk assets?

🔴Tether Quietly Builds a 140-Ton Gold War Chest

Tether has emerged as one of the largest non‑government holders of gold, with approximately 140 tons valued at about 24 billion dollars stored in high‑security Swiss vaults. The company has been steadily increasing its holdings, reportedly adding about 1 to 2 tons of gold per week and purchasing around 27 tons in the last quarter of 2025 alone.

A significant portion of these reserves backs Tether’s gold‑pegged token XAUT, providing on chain exposure to physically backed gold. With gold trading near record highs, Tether’s steady accumulation now rivals the pace of some central banks. As a result, it is increasingly seen as an influential player in the global bullion market, not just in crypto.

🔥 Bitcoin Crashes Below $76K

Bitcoin slid sharply over the weekend, dipping below $76,000 for the first time since early 2025 and brushing close to $75,000 amid a wave of forced selling. This move wiped out roughly $2 billion+ in leveraged positions; one of the biggest single liquidation events in recent months.

The drop pushed BTC below key levels like the “true market mean” (the average cost basis of active supply), and even Strategy’s corporate BTC cost basis, meaning large holders could be underwater if prices stay low.

Market watchers point to thin weekend liquidity and cascading stop‑losses as reasons the sell‑off accelerated. With lows near the April 2025 floor (~$74,500) back in focus, traders are watching closely to see if this is a deeper correction or just a leverage flush.

✴️ Trump’s Fed Pick Raises Questions for Crypto Markets

Trump’s nomination of former Fed governor Kevin Warsh has markets reading both ways for crypto. On one hand, his appointment could keep the door open for lower interest rates. On the other, Warsh’s cautious view on balance-sheet expansion, raises concerns that overall liquidity may not grow much, which isn’t ideal for risk assets.

Analysts highlight that the bigger worry is a potential U.S. liquidity squeeze, which has already contributed to a roughly $250 billion drop across crypto, stocks, and precious metals. Even if interest rates eventually fall, a tighter liquidity environment could keep Bitcoin and other risk assets under pressure.

📈 Dollar strength is weighing on Bitcoin

A sharp two-day rebound in the U.S. Dollar Index, the biggest in about nine months, is making it harder for BTC to steady after the recent sell-off. A stronger dollar usually cools demand for risk assets, so analysts see this move as a clear headwind for any meaningful Bitcoin recovery.

At the same time, the dollar has kept its gains on the back of strong U.S. economic data and changing expectations around Federal Reserve policy. That’s putting extra pressure on cryptocurrencies, with Bitcoin and Ether dipping as investors lean toward safer assets in the current macro environment.