The U.S. Dollar Index (DXY) is approaching a significant breakout above its 13-month consolidation range, putting pressure on Bitcoin, which is often seen as inversely correlated with the dollar. Bitcoin has weakened for the third consecutive day, trading near $63,900, as the broader cryptocurrency market experiences widespread pressure. The DXY rose 0.26% to 100.66, building on the previous session's 0.8% gain, and is nearing a key breakout point. Analysts suggest that a confirmed breakout could attract trend-following capital, further strengthening the dollar. Historically, a stronger dollar has negatively impacted USD-denominated risk assets like Bitcoin. The Federal Reserve's hawkish stance is believed to be bolstering the dollar, potentially shifting capital towards safe-haven and dollar-denominated assets.