Macroeconomic data, catalysts of a prolonged cryptocurrency cycle
Bitcoin (BTC) started in 2017 trading around USD 1,044, before reaching USD 2,187 on May 31 and closing the year at USD 14,156, which represents an approximate increase of 1,255% compared to its price at the beginning of the year, according to data from CoinMarketCap.
However, Pal speculated that the weakening of the US dollar could indicate that the current cryptocurrency cycle is still far from reaching its peak.
"With the dollar's decline even today, it begins to suggest that this could extend until the second quarter of 2026," he stated. Since January 1, the US dollar index (DXY) has decreased by 8.99%, standing at 98.77 at the time of publication, according to data from TradingView. Bitcoin and the DXY are inversely correlated.
When the dollar weakens, BTC becomes more attractive not only as a speculative investment but also as an alternative currency.
