Bitcoin, often presented as "digital gold," fails to function as a safe haven against the dollar’s dominance
As the US dollar strengthens significantly in February 2026, the cryptocurrency market is taking a major hit. Despite a relatively stable climate in the stock and technology markets, Bitcoin, Ethereum, Solana, and XRP are recording noticeable losses. Minutes from the Federal Reserve confirmed that interest rate cuts are not imminent, further bolstering the currency. At the same time, geopolitical tensions—primarily between the US and Iran—are intensifying the shift of investors toward safer havens. The DXY index, which measures the strength of the dollar, is moving upward, restricting international liquidity. A strong dollar makes purchasing digital assets more expensive for international investors, reducing demand and pushing prices down.
Crypto in free fall
Bitcoin fell approximately 1.7% within 24 hours, trading near $66,700. Ethereum lost 2%, XRP 5%, and Solana 4%. This decline stands in contrast to the relative stability of Asian equity markets. Investors, seeking safety, are turning to traditional assets. Cryptocurrencies, which are considered riskier, are struggling to attract new capital. Every short-term rally is followed by liquidations, creating a vicious cycle of pressure as long as the dollar remains strong.
Bitcoin: Digital gold or vulnerable asset
Bitcoin, often presented as "digital gold," is failing to function as a safe haven against the strength of the dollar. Unlike gold, which absorbs geopolitical and economic shocks, BTC is heavily influenced by monetary policy and macroeconomic pressures. However, a potential return of risk appetite, the stabilization of spot ETFs, or greater regulatory clarity could change the sentiment and lead to a recovery. The strong dollar of 2026 reveals the sensitivity of cryptocurrencies to macroeconomic developments. As long as the American currency maintains its momentum, pressure on the crypto market will likely continue, leaving open the question of whether digital assets can ultimately withstand traditional economic forces.
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