{"id":12969,"date":"2026-09-08T19:57:35","date_gmt":"2026-09-08T19:57:35","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=12969"},"modified":"2026-09-08T19:57:35","modified_gmt":"2026-09-08T19:57:35","slug":"bitcoin-could-get-the-dollar-drop-bulls-want-this-week-without-getting-the-liquidity-rally-they-need","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=12969","title":{"rendered":"Bitcoin could get the dollar drop bulls want this week without getting the liquidity rally they need"},"content":{"rendered":"

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Bitcoin\u2019s next macro catalyst may weaken the dollar without delivering the easier money bulls need.<\/p>\n

The European Central Bank\u2019s Sept. 10 policy decision could strengthen the euro and push the dollar index lower, potentially offering relief to Bitcoin after its latest slide below $80,000. But a currency-driven drop in DXY would provide limited evidence that the financing conditions restraining risk assets have actually improved.<\/p>\n

Data from CryptoSlate<\/em> showed that Bitcoin was trading around $78,800, down roughly 1% over 24 hours, after stronger US labor data revived expectations that interest rates could remain elevated.<\/p>\n

That leaves Thursday\u2019s ECB decision as the next major macro event that could shift the currency backdrop before US inflation data return the focus to the Federal Reserve.<\/p>\n

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Related Reading<\/span><\/p>\n

Bitcoin falls below $80,000 as hot US payrolls revive Fed hike risk<\/h3>\n<\/p>\n

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The distinction will hinge on what moves alongside the euro. A sustained Bitcoin recovery would carry more weight if it coincides with lower real yields, easier credit conditions and gains in both BTC\/USD and BTC\/EUR. A falling DXY on its own could simply reflect Europe becoming relatively more attractive.<\/p>\n

A stronger euro can flatter Bitcoin\u2019s dollar signal<\/h2>\n

The complication comes from how the dollar index is constructed.<\/p>\n

The euro carries a 57.6% weight in the dollar index maintained by Intercontinental Exchange, far larger than the Japanese yen at 13.6% or the British pound at 11.9%. A sufficiently strong move in EUR\/USD can therefore drag the index lower even if US borrowing costs remain high and the amount of capital available to investors barely changes.<\/p>\n

That creates a potential false positive for Bitcoin traders who use the dollar index as a shorthand for liquidity conditions.<\/p>\n

If the euro appreciates while Bitcoin\u2019s dollar price remains unchanged, the cryptocurrency becomes cheaper for a euro-based buyer. If Bitcoin subsequently rises in dollars but makes little progress in euros, part of the apparent strength can be explained by currency translation rather than broader demand.<\/p>\n

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Recent trading shows why the distinction can be useful.<\/p>\n

Between the Sept. 1 and Sept. 3 UTC closes, Bitcoin gained 4.99% against the dollar and 4.63% against the euro. That advance occurred alongside a modest decline in US real yields, giving the move support beyond foreign exchange.<\/p>\n

The pattern reversed later. From Sept. 6 to Sept. 7, Bitcoin fell 1.55% against the dollar and 1.65% against the euro, showing that the weakness was visible to holders on both sides of the Atlantic rather than being driven primarily by a change in the dollar-euro exchange rate.<\/p>\n