This week, Bitcoin seems to be struggling against the strengthening dollar. The price remains in the $75,000-$80,000 zone after a sharp decline last weekend, but the recovery momentum feels hindered. What concerns me is the (DXY) dollar index, which suddenly rebounded, rising 1.5% to 97.60 in the past two days—this is the strongest increase in 9 months. When the dollar strengthens, USD-denominated assets like Bitcoin and gold are usually pressured because opportunity costs increase.

Why did the dollar suddenly become strong again? The market seems worried about who will lead the Federal Reserve moving forward. Kevin Warsh, a former Trump Fed nominee, has a reputation as a "policy hawk" from his tenure from 2006-2011, so investors are starting to price in the possibility of a slower interest rate cut. This differs from previous expectations. Plus, the upcoming nonfarm payrolls report—if the employment data is strong, it could give the dollar more momentum.

Some traders hope the CME futures gap could trigger a bounce above $80,000, but if the dollar continues to strengthen, Bitcoin will remain under pressure. Meanwhile, there's also drama in the DeFi sector—Justin Sun suddenly cut ties with World Liberty Financial, claiming his project treats users like personal ATMs. But that's another story. The key now is whether Bitcoin can break through resistance or stay trapped in this range.