Dollar strength weighs on Bitcoin, but an AI bust could bring longer-term support

A stronger dollar could pressure Bitcoin in the short term, while an unwinding of the AI investment boom could eventually support it by weakening U.S. equities and the dollar, according to Bitwise’s Andre Dragosh. The argument rests on a shift in international capital flows: weaker U.S. stock performance could draw money away from American markets, putting downward pressure on the dollar and creating more favorable conditions for Bitcoin. Speaking in a Bitcoin Magazine interview on November 1, Dragosh, Bitwise’s head of European research, said the dollar had been Bitcoin’s dominant macroeconomic driver over the past six months.