tl;dr
The US Dollar Index (DXY) has dropped to a three-year low, while gold has reached an all-time high amid rising trade tensions. The weakening dollar has sparked optimism among cryptocurrency investors, who see it as a bullish signal for Bitcoin (BTC). Data shows the DXY index dropped by 1.5% in the l...
The US Dollar Index (DXY) has dropped to a three-year low, while gold has reached an all-time high amid rising trade tensions. The weakening dollar has sparked optimism among cryptocurrency investors, who see it as a bullish signal for Bitcoin (BTC). Data shows the DXY index dropped by 1.5% in the last 24 hours, standing at 99.4, its lowest level since April 2022. Historical data suggests a strong correlation between a declining DXY and substantial Bitcoin price surges. Bitcoin has already shown signs of recovery, and market watchers anticipate a potential major surge. Analysts believe that the DXY’s decline could lead to a massive bull market for Bitcoin, crypto, and stocks. The coming weeks will be crucial in determining whether Bitcoin will enter another bull run or falter under geopolitical tensions and broader market shifts.
The decline contrasts with gold’s performance, which hit an all-time high of $3,220 amid rising trade war tensions. Yet, DXY’s dip has sparked optimism among cryptocurrency investors. Many see the weakening dollar as a bullish signal for Bitcoin (BTC), which has recently shown signs of modest recovery. Data shows that the DXY index dropped by 1.5% in the last 24 hours. As of press time, it stood at 99.4, marking its lowest level since April 2022. The decline is part of a broader trend in 2025, with the DXY down 8.3% since January.
The last two times the DXY fell below the 100 mark—in April 2017 and May 2020—Bitcoin experienced significant, months-long rallies. These substantial increases have led to speculation that history could repeat itself. If it does, Bitcoin could potentially be poised for another major surge. Interestingly, Bitcoin has already shown signs of recovery after the 90-day tariff pause. The largest cryptocurrency reclaimed the $80,000 level, signaling renewed investor confidence. According to BeInCrypto data, Bitcoin appreciated by 0.8% over the past 24 hours. This reflected minor but positive gains that suggest momentum could be building.
Another analyst described DXY’s decline as “one of the best anticipated macro moves ahead.” He also acknowledged that the markets have been slow to react, attributing this delay to a lag of more than three months. Additionally, he noted that the ongoing bond situation between China and the US, driven by escalating trade tensions, is contributing to this slow reaction. Yet, he believes this situation will either be resolved through a deal between the two countries or the Federal Reserve will intervene by buying long-term bonds to stabilize the market.