I am currently observing an interesting phenomenon in the crypto market. The rise of the dollar really seems to be becoming a braking factor, especially after tensions in the Iran conflict escalated. This is no coincidence – when the dollar strengthens, capital flows out of riskier assets like cryptocurrencies. Investors then tend to seek safe havens.

What surprised me: The markets are reacting not only to economic data but also strongly to geopolitical uncertainty. The $100 mark for certain assets has long been a psychological threshold, but now you can see how quickly it can crumble when risk aversion increases.

The correlation between dollar strength and crypto performance has become truly remarkable. I’ve been tracking this for a while, and it repeatedly shows: when Fed signals turn hawkish or the dollar appreciates, altcoins especially suffer. This should be kept in mind when managing your portfolio.

It’s also interesting how quickly market psychology can change. One week of geopolitical calm, and cryptocurrencies could rally again – or not, if the dollar continues to rise. On Gate, you could look at the current developments of the main headlines to see how different assets are reacting.