Is Bitcoin Preparing for a Breakout as the US Dollar Index Continues to Dip?
The US dollar index (DXY) has seen its biggest drop in years, a move historically associated with positive growth in risk assets like Bitcoin (BTC). According to CryptoQuant, there is a repeated pattern of a weak DXY correlating with strong BTC. The DXY, currently at a historic low due to US debt reaching an all-time high, may lose its appeal as a safe haven, prompting investors to turn to risk assets like BTC.
Despite these conditions which could spur a BTC rally, the crypto asset's price has remained within a 10% range from $100,000 to $110,000 since May. Experts believe an increase in demand and liquidity is needed for BTC to sustain a price rally, despite the risk of a significant correction.