The Bitcoin and Ethereum prices rallied after reports of the US dollar 
crashing spread across the market. Recent data show that the US dollar has 
fallen to its lowest level in four years, raising concerns about the strength 
of the world’s dominant reserve currency. As the dollar weakens, market 
players are beginning to shift attention to alternative assets such as 
precious metals and digital currencies, including BTC, which is increasingly 
viewed as a potential hedge against rising inflation and currency 
depreciation. US Dollar Falls To Lows Not Seen In 4 Years New reports from 
Bloomberg highlight the relentless slide in the US dollar index (DXY) over 
recent weeks, with the price tumbling further after President Donald Trump’s 
comments on the currency’s performance. Sources reveal that Trump said the 
dollar is “doing great,” despite its ongoing downturn. Related Reading: 
Analyst Says Chainlink Price Could Crash 50% If This Level Fails Traders 
interpreted the President’s seemingly indifferent response to the declining 
dollar as a signal that the slide could continue, triggering further selling 
pressure. Data from the web-based stock market research platform Finviz shows 
that, as of writing, the US dollar index has crashed to 95.92 from a previous 
level near 100. This marks its weakest level in nearly four years, 
specifically since 2022. Additionally, Bloomberg reported that its Dollar Spot 
Index also recorded its lowest four-day decline since Trump announced new 
tariffs in April 2025. Traders in the $9.5 trillion per-day currency markets 
are also increasingly betting that the dollar could decline further, as US 
policy risks weigh on the world’s primary reserve currency. Amidst the decline 
in the US dollar index, cryptocurrencies like Bitcoin and Ethereum are posting 
gains. BTC’s price rose above $89,000, while Ethereum has climbed more than 3% 
to reach above $3,000, in the past 24 hours. This simultaneous rally in 
cryptocurrencies alongside the weakening US dollar suggests that investors may 
be shifting capital to risk-on assets. Market analyst ‘Master of Crypto’ 
recently outlined several reasons behind the continued decline in the 
weakening US dollar in a post on X. He explained that large budget deficits, 
the FED’s challenge of balancing inflation control with job market stability, 
steady bond supply, and FX hedging activities are keeping the US dollar near 
recent lows. According to him, in this type of market environment, holding 
idle cash becomes a significant risk for investors. Related Reading: Here’s 
How Much XRP Ripple Execs Have Dumped So Far Possible Implications For The 
Bitcoin And Ethereum Price Historically, periods of US dollar weakness have 
often coincided with rallies in Bitcoin, and other cryptocurrencies. When the 
dollar declines, investors sometimes seek alternative assets to preserve 
value. This can increase demand for Bitcoin and Ethereum, which are viewed by 
many as alternative stores of value and risk-on assets. While this correlation 
is not a clear indication of a potential cryptocurrency rally, analysts like 
‘Milk Road Macro’ suggest that the declining dollar could help support a 
broader crypto market recovery. He said that as the dollar weakens, capital 
will flow into precious metals like gold and silver. Soon after, this same 
capital is expected to rotate into BTC, potentially fueling a price rebound. 
Featured image created with Dall.E, chart from Tradingview.com

What’s Going On With The US Dollar And How Does It Affect Bitcoin, Ethereum Prices?

MEXC will list XYZ, marking the token’s first exchange debut as investors in 
early 2026 shift focus toward new crypto listings and fresh market entries 
MEXC is scheduled to list the XYZ token on January 29, with trading set to…

XYZ to list on MEXC on Jan. 29 as crypto people turn attention to new crypto listings in early 2026

Banks warn stablecoins could siphon deposits from the banking system, but 
policy and regulatory experts say there’s little evidence of it happening yet.

Banks fear stablecoin ‘bank run,’ regulators see limited impact

Fidelity&#8217;s stablecoin launch could reshape the financial landscape, 
intensifying competition and potentially driving innovation in blockchain 
finance.
The post Fidelity set to debut FIDD stablecoin on Ethereum next month appeared 
first on Crypto Briefing.

Fidelity set to debut FIDD stablecoin on Ethereum next month

An attack on Iran would be bearish for Bitcoin (its role as a safe-haven has 
been debunked). Recall how BTC dropped as Trump threatened tariffs on key NATO 
allies amid talk of a Greenland takeover.

Cryptocurrency price in USD