Bitcoin price fell below $122,000 as a stronger US dollar dampened risk appetite and reduced global liquidity. The decline came just days after BTC hit a new high above $126,000.
Analyst Jamie Coutts said the fall was due to macroeconomic factors, not underlying weakness in the crypto market. DXY is now nearing key resistance levels of 100–101, signaling near-term pressure on risk assets like Bitcoin.
Market data shows open interest on Binance has fallen by nearly 8%, signaling traders are closing leveraged positions and shifting to a cautious approach. This pattern typically precedes price consolidation phases.
Meanwhile, the flow between the Asian and US markets remains balanced, with stable institutional demand and subdued retail participation. On-chain data also suggests miners are still enjoying modest profits without major selling pressure.
Despite the strengthening dollar, analysts remain optimistic that increased global liquidity and an improving economic cycle will keep the crypto market outlook positive at least until mid-2026.
