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Regarding the U.S. dollar, recent analyses suggest that Bitcoin is increasingly viewed as a hedge against structural dollar depreciation. This perspective is gaining traction among traders who are seeking assets that can potentially preserve value amid concerns about the dollar's long-term strength.

Bitcoin is experiencing moderate volatility and a slight price increase, with growing interest in its role as a potential hedge against U.S. dollar depreciation.

As of May 3, 2025, Bitcoin (BTC) is experiencing heightened volatility and price fluctuations, influenced by macroeconomic factors, including the depreciation of the U.S. dollar.

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💱 U.S. Dollar Depreciation and Its Impact on Bitcoin

The U.S. Dollar Index (DXY) has declined to 96.25, its lowest level since early 2024, indicating a weakening dollar. This depreciation has led investors to seek alternatives to traditional currencies, boosting Bitcoin's appeal as a hedge against dollar weakness.

Historically, Bitcoin has exhibited an inverse correlation with the U.S. dollar. As the dollar weakens, Bitcoin is often viewed as a "safe haven" by investors seeking protection from currency depreciation and inflation.