Bitcoin Back Above $77,500 as Dollar Hedging Fades
Institutional investors are cutting their dollar hedging to the lowest level since 2015, while Bitcoin and major altcoins move with currency flows and sentiment.
Key Takeaways
- Bitcoin traded just above $77,500 in Asia on Thursday morning, about 1% higher over 24 hours and roughly 3% lower on the week.
- BNB, XRP, Dogecoin, Tron, Solana, Zcash, and Bitcoin all rose about 2% to nearly 3%, while Ether and Hyperliquid stayed basically flat.
- As of June 30, institutional investors were still hedging 41% of their foreign exchange risk, the lowest level since at least 2015.
Bitcoin traded just above $77,500 (€66,900) in Asia on Thursday morning. That put the coin about 1% higher over 24 hours, but still around 3% lower on the week. At the same time, several major altcoins showed green, while institutional investors’ dollar hedging worldwide fell to its lowest level in years.
Altcoins Turn Green
BNB led the gainers with a rise of nearly 3%. XRP and Dogecoin each climbed more than 2%. Tron, Solana, Zcash, and Bitcoin all came in at about 2% gains. Ether and Hyperliquid stayed basically flat.
That broad bounce fits into a market where Bitcoin clearly moved with currency flows over the past week. When the dollar weakens, investors sometimes move back into risk, but in the short term the crypto market still tends to be especially sensitive to fast shifts in the dollar and in sentiment around major coins.
Less Protection Against the Dollar
According to Bloomberg, pension funds and insurers in Japan, Canada, Taiwan, and three other markets had only 41% of their foreign exchange risk hedged as of June 30. That is the lowest level since at least 2015. Hedging means investors pay to lock in an exchange rate, but that protection has become less popular as the dollar has been seen for years as a safe haven in shaky markets.
An unhedged investor who sees the dollar as less safe has to sell dollars to reduce exposure. That makes currency flows themselves relevant for crypto, because Bitcoin was clearly sensitive to moves in the dollar over the past week.
Why This Matters for Crypto
For European crypto readers, this is especially relevant because Bitcoin and major altcoins are increasingly moving with broader macro flows, not just with news from the sector itself. If large institutional players keep cutting back their dollar protection, that could put more focus on currency moves in the crypto market. The yen also remains an important signal here, because a move around 160 could be the first visible sign, according to market watchers, of where that reduction is showing up.
The recent price action lines up with the broader picture of Bitcoin returning above $77,500 (€66,900) while XRP helped push the major coins higher. That fits a market where macro expectations and risk sentiment are at least as important right now as pure crypto news.
