Crypto Market Under Pressure as Bitcoin Slides Amid Stronger US Dollar
Jakarta, 4 March 2026 – The cryptocurrency market faced renewed pressure in early Wednesday trading, with Bitcoin (BTC) edging lower amid a strengthening US dollar and ongoing geopolitical concerns. Despite these headwinds, continued institutional interest in crypto exchange-traded fund (ETF) products provides some optimism for a potential recovery.
According to data from CoinMarketCap at 06:20 WIB, the global cryptocurrency market capitalization dropped by 1.63%, falling to USD 2.33 trillion. Bitcoin prices declined 0.97%, with each coin valued at approximately USD 68,551, or around IDR 1.15 billion based on an exchange rate of IDR 16,906. The broader CoinDesk 20 Index, which tracks the top 20 crypto assets by market size, slipped 1.65%.
Other major cryptocurrencies also experienced notable losses:
- Ethereum (ETH) decreased 2.63% to USD 1,990
- Binance Coin (BNB) fell 0.74% to USD 634
- XRP dropped 2.34% to USD 1.36
- Dogecoin (DOGE) slid 4.27% to USD 0.09
- Solana (SOL) edged down slightly by 0.25% to USD 87
Despite the overall market weakness, Bitcoin managed to remain above the USD 68,000 threshold. Interestingly, this resilience came even as the Nasdaq 100 index fell by 1% and gold prices declined by 4%, indicating a certain degree of decoupling between Bitcoin and traditional financial markets.
A primary concern weighing on investors is the strengthening US dollar, which rose sharply to a near three-month high. The US Dollar Index (DXY) climbed to 99.4 on Tuesday, up from 96.6 just three weeks prior, fueled by heightened demand for cash and government bonds amid the prevailing risk-off sentiment. The geopolitical tensions, particularly the ongoing risk of a prolonged US-Iran conflict, have contributed to the increased dollar demand.
Historically, periods of a weaker dollar have often been followed by rallies in Bitcoin prices. However, recent market dynamics show a more complex relationship. The short-term correlation between Bitcoin and the Nasdaq 100 index has decreased to 69%, suggesting greater volatility and intricate market interactions.
Other factors continuing to dampen bullish sentiment for Bitcoin include remnants of the October 2025 flash crash, apprehension surrounding advances in quantum computing, slow progress in establishing a US Strategic Bitcoin Reserve, and a notable shift of investor focus toward emerging sectors like artificial intelligence (AI).
Nevertheless, institutional inflows into crypto ETFs persist, reflecting ongoing investor interest and potentially underpinning the market’s ability to withstand current challenges.
Reported by Zetta Hannany and Dhika Priambodo for IDNFinancials.
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