Bitcoin Stands Firm as Euro Hits 17-Month Low Against Stronger Dollar
The euro hit a 17-month low against the U.S. dollar, dropping to $1.1161 as the Dollar Index (DXY) climbed to 102.37. This weakness in the euro was driven by fiscal stress in France and political uncertainty in Spain, which widened the yield premium between French and German bonds. Meanwhile, Bitcoin (BTC) held steady near $86,463, just 1.1% below its September high of $87,378, despite the strengthening dollar.
The Federal Reserve's pricing models indicated a 79.5% chance of no rate hike in October, up from 36% a week earlier. This shift in expectations, combined with a U.S. 10-year yield of 5.26%, further bolstered the dollar's strength. The euro's decline to its weakest level since May 2025 highlighted growing concerns about France's heavy debt burden and political gridlock.
Bitcoin's resilience near its late-September resistance level amid these macroeconomic shifts is seen as a cautiously bullish sign for the crypto market. The combination of easing Fed rate hike expectations and a stronger dollar has created a complex backdrop for both traditional and digital assets.