Bitcoin (BTC) jumps to a record high of $111,900

The US dollar index also had the worst performance since April, when Donald Trump announced his “reciprocal” tariffs.

Crypto prices rose this week as U.S. stock indices like the Dow Jones, S&P 500, and the Russell 2000 fell sharply. The U.S. dollar index also had the worst performance.

The world's biggest cryptocurrency, Bitcoin (BTC), jumped to a record high of $111,900, while the market capitalization of all altcoins excluding Bitcoin soared to $1.29 trillion, hitting the highest point since February this year.

The Dow Jones, which tracks 30 blue-chip companies, dropped to $41,340, sliding by 3.45% from its highest level this month. Other top blue-chip indices fell by over 1.2%, erasing billions of dollars in value.

The U.S. Dollar Index, which tracks the greenback’s performance against a basket of currencies, dropped to $99.10, moving into a technical correction. A correction happens when an asset's price drops by 10% from a local top.

Crypto prices outperform as Moody's downgrades U.S. credit rating

The Standard & Poor's rating agency had already downgraded the U.S. credit rating by one notch, and Moody's followed suit, downgrading the U.S. to Aaa from Aa1.

The rating was downgraded from Triple-A to a notch lower, and Moody's cited the substantial debt that the country is accumulating.

The House of Representatives' vote for Donald Trump's "Big Beautiful Bill," which cuts over $4 trillion in taxes, is expected to increase the public debt by $4 trillion to $5 trillion over a decade.

The sell-off of stocks and the U.S. dollar continued after the House of Representatives voted for Donald Trump's "Big Beautiful Bill," which cuts over $4 trillion in taxes. The bill is estimated to increase the public debt by $4 trillion to $5 trillion over a decade, a concerning development as the national debt is approaching $37 trillion.

U.S. stocks dropped on Friday after Trump warned that the U.S. would begin imposing a 50% tariff on European goods on June 1. The EU has threatened to retaliate, announcing that it will impose reciprocal tariffs on U.S. goods. This move will disrupt annual trade volumes of over $1.7 trillion.

Analysts note that Bitcoin's fundamentals are strong enough to withstand these concerns. For one, data shows that demand among institutions is rising, while supply continues to fall this year. Bitcoin is also viewed as digital gold, which may help it perform well in the long term.