Bitcoin bulls eye possible tailwind as U.S. dollar index continues to leg lower
Despite the U.S. dollar index falling to multi-year lows, Bitcoin has not yet benefited from this potential tailwind.Summary
The U.S. dollar index (DXY) is trading near its 2025 low, continuing a sharp decline that began after the November 2024 election. While this weakness initially coincided with record highs for stocks, gold, and Bitcoin, the crypto market has since endured significant bear moves since October, even as other hard assets like gold, silver, and copper continue to surge to new records. The DXY is currently hovering above a major long-term support level dating back to the 2008 financial crisis. With foreign central banks tightening policy and President Trump pressuring the Federal Reserve to lower rates, the dollar risks breaking this key support. Analysts suggest that a definitive break below this level might finally provide the necessary catalyst to reverse Bitcoin's current downtrend, despite the dollar's weakness not yet having a salutary effect on BTC.
(Source：CoinDesk)