Bitcoin $83,100.85In recent weeks, investors are looking for signs of a potential recovery while watching at low levels. The sudden decrease in the US Dollar Power Index (DXY) reminds us of the rise scenarios in the past in Bitcoin prices. According to historical data, the harsh decline in DXY can trigger positive price movements in Bitcoin. While the markets carefully watch this data, Bitcoin’s future aspect is a matter of curiosity.
The inverse relationship between Bitcoin and DXY
It is a long known fact that Bitcoin prices are inversely proportional to DXY. When DXY gains value, Bitcoin usually tends to decline. On the contrary, rises can be observed in Bitcoin when DXY declines.
The recent decline in DGY is considered a promising development for Bitcoin investors. While investors turn to the dollar as a safe port in periods of economic uncertainties, the strengthening in DXY can cause Bitcoin to lose value. However, the weakening of the dollar can allow the risk appetite in the crypto currency market and the value of Bitcoin.
On a single screen instant prices, important data, news, latest developments, comments and discussions at Chat! Come right away from your eyes!
This correlation has proven itself in the past years. Particularly in 2015, 2020 and 2022, there were strong rise in Bitcoin after similar decreases in DXY. Investors are now closely following whether this tendency will repeat.
Bitcoin’s reaction in past Dxy drops
Past data shows that the weakening periods of DXY usually have positive results for Bitcoin. In 2015, after the decline of DXY, it was observed that Bitcoin entered a rise trend. Similarly, during the period of 2020, the dollar index decreased during the period, while Bitcoin reached the highest levels of all time. In 2022, after the weakening in DXY, Bitcoin had recovery signals.
When the current market conditions are evaluated, how Bitcoin reacts to the decline in DXY has been the focus of investors. Although historical data show that Bitcoin usually rises during the weakening of the dollar, each period has its own economic dynamics. Investors are trying to make more conscious decisions, taking into account macroeconomic factors.
The decline in DXY affected not only Bitcoin, but also the traditional market indices such as Nasdaq and S&P 500. This reveals that general trends in financial markets are closely related to the crypto money market. Investors continue to closely follow global economic developments to see how Bitcoin will follow in the coming period.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.