Bitcoin Eyes Rally as DXY Hits 21-Year Low!

Yeliz Akmaca — Thu, 10 Jul 2025 07:11:25 +0000

The US Dollar Index (DXY) has dropped to its weakest level in the last 21 years. It is now trading more than 6.5 points below its annual and 200-day moving averages. This indicates a significant depreciation of the dollar in recent months. Meanwhile, Bitcoin (BTC) is receiving bullish signals in response to this weakness.

Historical Weakness in DXY and Its Impact on Bitcoin

On July 1, 2025, the DXY fell to 96.377, a level not seen in over three years. According to CryptoQuant data, Bitcoin maintains an inverse correlation with the US Dollar Index. The DXY remaining below its 200-day moving average often creates upward momentum for BTC.

Darkfost highlights that despite US debt reaching an all-time high, the dollar fails to show strength. He notes this as the largest deviation in the last 21 years. However, such weakness tends to benefit risk assets like Bitcoin.

Historical data confirms that such periods have been highly favorable for BTC. Currently, DXY’s decline may set the stage for a new Bitcoin rally, although the price has not yet responded.

Historically, Bitcoin moves inversely to the dollar index. As the dollar weakens, investors tend to shift to alternative assets. This leads to changes in portfolio allocations, increasing demand for Bitcoin.

Current Correlation Status Between Bitcoin and DXY

So far, Bitcoin has not fully responded to the dollar’s historical weakness. However, chart patterns show that periods where DXY stays below its annual average are generally favorable for BTC, signaling potential for a future rally.

TradingView data shows that DXY has lost more than 10% of its value since the beginning of the year. Darkfost emphasizes that investors are turning away from the dollar as a safe haven and shifting capital toward risk assets.

“Looking at historical data, it becomes clear that such periods have been highly favorable to BTC. We are currently in a phase where the weakness of the DXY could fuel a new rise in BTC but the price didn’t react yet.”

Bitcoin’s inverse correlation with the dollar stands out as a critical element in the market. This trend continues as part of the broader risk-on asset narrative. As the dollar weakens, investors increasingly consider Bitcoin for their portfolios.

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The post Bitcoin Eyes Rally as DXY Hits 21-Year Low! appeared first on Coin Engineer.

Will Bitcoin Hit New Highs in 2026? Insights from Raoul Pal

Yeliz Akmaca — Sat, 21 Jun 2025 08:00:23 +0000

Real Vision CEO Raoul Pal stated that, based on global economic data, the current crypto cycle may extend into the second quarter of 2026. In a recent video, Pal noted striking similarities between the current market structure and that of 2017. Throughout that year, Bitcoin gradually increased in value before experiencing a sharp jump in December.

Falling Dollar Index Boosts Bitcoin

Bitcoin entered 2017 at $1,044 and surged to $14,156 by the end of the year, gaining approximately 1,255%. A similar scenario could be unfolding today. According to Pal, macroeconomic indicators lie at the core of this similarity. In particular, the weakening of the US dollar stands out. Since the beginning of 2025, the US Dollar Index (DXY) has dropped 8.99%, falling to 98.77. As the dollar and Bitcoin are inversely correlated, a weaker dollar makes BTC more appealing.

Another key indicator is Pal’s “business cycle score,” which reflects the current phase of the global economic cycle. The score is now below 50, indicating the cycle is still in an early stage. Pal explained that this is due to delayed interest rate adjustments. As the dollar remained flat for a long time, the crypto cycle was also postponed.

Pal also referenced the year 2020, when Bitcoin began at $7,174, dipped to $5,227 in March, but ended the year at $28,993, marking a 304% increase. Today’s market dynamics may also support a similar upward trend.

Middle East Preparing for a Blockchain-Based Future

Pal added that for the crypto market to continue growing, it must attract institutional investors. During his visit to the Middle East, he observed a rising interest in crypto among sovereign wealth funds. Countries like Saudi Arabia, Abu Dhabi, Dubai, Bahrain, and Qatar are focusing not only on Bitcoin as a reserve asset but also on building government infrastructure using blockchain technology.

Another factor shaping the direction of crypto markets will be the level of involvement from major players. Macroeconomic data and technological transformation are among the key drivers of this growing interest.