CryptoQuant: Weakening U.S. Dollar Sets the Stage for a New Bitcoin Rally
Analysts at CryptoQuant have stated that the weakening of the U.S. dollar could pave the way for a fresh surge in Bitcoin’s price. The U.S. Dollar Index has dropped to its lowest historical level and is currently 6.5 points below its 200-day moving average — the largest gap in over 21 years.
Historically, a decline in the dollar’s value has often created a favorable environment for risk assets like Bitcoin. Since 2015, the negative correlation between Bitcoin and the Dollar Index has typically ranged from -0.4 to -0.8.
