US Dollar Index Declines Further, Could Bitcoin Be Gearing Up for a Breakout?
2025-07-09 12:55:36
Main Idea
The decline in the U.S. dollar index (DXY) has historically correlated with strong performance in Bitcoin (BTC), and current market conditions suggest a potential breakout for BTC.
Key Points
1. The U.S. dollar index (DXY) has fallen significantly, trading around 6.5 points below its 200-day moving average, marking its largest deviation in years.
2. Analyst Darkfost notes that DXY dips tend to benefit risk assets like BTC, often signaling early bull market conditions.
3. BTC has been trading within a 10% range ($100,000-$110,000) since late May, with its current price at $108,800.
4. A weak DXY historically correlates with strong BTC performance, a well-known relationship in traditional finance.
5. Market conditions suggest BTC may be poised for a breakout, though sustained demand is needed for a price rally.
Description
The United States dollar index (DXY) has been on a decline over the past four months, recording its largest plunge in years. Since such moves have historically been correlated with positive growth in risk assets, bitcoin (BTC) could be gearing up for a strong breakout. According to a report by the market analytics platform CryptoQuant, the correlation between a weak DXY and strong BTC has emerged multiple times in the past. DXY Is Still Falling With the U.S. debt hitting a new all-time high (ATH...
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