The primary driver behind this pronounced bearish stance on the dollar appears to be growing concern over the U.S. labor market. Investors increasingly believe that potential weakness in employment data could pressure the Federal Reserve into cutting interest rates. Expectations of monetary easing have, in turn, fueled broader dollar pessimism.

Bitcoin and the Dollar: A Historically Inverse Relationship

Since its inception, Bitcoin has generally exhibited an inverse correlation with the U.S. Dollar Index (DXY). When the dollar weakens, Bitcoin has often strengthened; when the dollar appreciates, risk assets—including cryptocurrencies—tend to face headwinds.

There are two core explanations for this pattern. First, Bitcoin is priced in dollars, so a weaker dollar effectively makes the asset relatively more attractive. Second, a strong dollar typically tightens global financial conditions, weighing on higher-risk assets.

Viewed through this traditional lens, record bearish positioning against the dollar could be interpreted as a tailwind for Bitcoin.

A Changing Correlation Dynamic

However, recent market behavior complicates the narrative. Since the beginning of 2025, Bitcoin and the dollar have displayed an unusual positive correlation. While the DXY declined by more than 9% last year and is down roughly 1% this year, Bitcoin has not benefited. Instead, it has fallen 6% over 2025 overall, with losses reaching approximately 21% year-to-date.

The 90-day correlation coefficient has climbed to 0,60, marking its highest level since April 2025. This shift suggests that the conventional inverse relationship may no longer be reliable in the current macro environment.

If this positive correlation persists, further dollar weakness could have the opposite of its typical effect, potentially weighing on Bitcoin rather than supporting it.

Volatility Risks and the Short Squeeze Scenario

At the same time, extreme short positioning in the dollar raises the risk of a sharp reversal. A sudden rebound in the dollar could trigger a short squeeze, forcing investors to rapidly cover positions and driving the currency higher. In such a scenario, Bitcoin could move upward alongside the dollar, reflecting the current correlation structure.

With dollar sentiment stretched to historic extremes, volatility risks are elevated. Bitcoin’s trajectory will depend not only on the direction of the dollar, but also on how this evolving correlation dynamic unfolds.

This content is not investment advice.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post BofA Survey Signals Record Dollar Bearishness: What It Means for Bitcoin appeared first on Coin Engineer.

Dollar Index Hits Nine-Month High in Two Days

According to TradingView, the DXY rose 1.5% in two days to 97.60, marking its strongest two-day gain in nine months. Analysts attribute the surge to expectations that Fed chair nominee Kevin Warsh will take a cautious approach to rate cuts and upcoming macroeconomic data.

ING analysts noted, “The dollar looks healthier. Last week’s sharp decline has been resolved since Warsh’s nomination as Fed Chair.”

Bitcoin Stabilizes but Faces Headwinds

BTC stabilized between $75,000–$80,000 after falling below $75,000 from $85,000 over the weekend. Futures market dynamics could trigger a rebound above $80,000, but the rising DXY limits this potential.

A stronger dollar increases the opportunity cost of holding dollar-denominated assets like Bitcoin and gold. Rising DXY typically signals downward pressure on BTC. Additionally, a strong dollar can tighten financial conditions, making money and credit more expensive and reducing risk appetite in global markets.

Kevin Warsh and U.S. Data Create Uncertainty

Markets closely watch Warsh’s policy approach. Previously seen as hawkish during his 2006–2011 Fed tenure, he is expected to be cautious on aggressive rate cuts compared to other candidates.

Upcoming U.S. employment data, particularly the nonfarm payroll report, will be key. Initially scheduled for February 6, the report was delayed due to the partial federal shutdown. Analysts expect 80,000 new jobs and a 4.4% unemployment rate, potentially supporting dollar stabilization.

FX and macro strategists note that the DXY’s upward trend may continue. Matthew Ryan commented, “Warsh’s past hawkish image suggests he may act cautiously on rate cuts. The dollar is likely to remain strong in the short term.”

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post Bitcoin Struggles to Recover as Dollar Index Strengthens appeared first on Coin Engineer.

Why Is the Dollar Index Falling?

The U.S. Dollar Index (DXY) has declined to around the 96.8 level, marking its lowest point in the past four months. This drop places the dollar more than 15% below its 2022 peak and represents one of its weakest performance periods since 2017. According to experts, pressure on the dollar has intensified as expectations of a potential intervention in the Japanese yen market have strengthened.

Reports that the U.S. Federal Reserve has contacted major banks to assess conditions in the yen market are being interpreted as early signals of a possible currency intervention. Following these developments, the dollar rapidly lost value against the yen, approaching the 154 yen level. Japanese officials have also stated that they are prepared to intervene if currency movements become abnormal. Confirmation of discussions with U.S. officials has further increased expectations of coordinated action.

What Does a Weak Dollar Mean for Bitcoin?

Historically, Bitcoin and the U.S. dollar have shown an inverse relationship. When the dollar weakens, risk assets such as Bitcoin tend to perform more strongly. The sharp decline in the Dollar Index in 2017 coincided with the beginning of Bitcoin’s historic rally, during which it rose from below $200 to nearly $20,000.

Today, commentators increasingly suggest that a similar macroeconomic backdrop may be forming. Crypto analyst TED highlights that Bitcoin’s correlation with the Japanese yen is close to record highs. Accordingly, a potential strengthening of the yen following intervention could also act as a supportive factor for Bitcoin. It is noted that during past yen intervention periods, Bitcoin first experienced a weekly decline of around 29%, followed by a rapid surge of up to 100% in a short time.

Arthur Hayes’ Strong Forecast for Bitcoin

BitMEX co-founder Arthur Hayes states that if global liquidity conditions begin to ease again, Bitcoin could see a sharp and rapid rise. According to Hayes, a renewed expansion of balance sheets by major central banks—especially the U.S. Federal Reserve—could inject additional liquidity into markets, acting as a strong catalyst for scarce-supply assets like Bitcoin. Under this scenario, Hayes predicts that Bitcoin could reach $200,000 by March 2026. In a more aggressive outlook, he even argues that levels as high as $500,000 could theoretically be possible if global capital flows increase much faster than expected.

Despite these bullish expectations, Bitcoin is currently trading around $87,615 and has declined by approximately 1% over the past 24 hours. Analysts suggest that while this points to a cautious and volatile market structure in the short term, a weakening dollar and strengthening expectations around global liquidity could provide a supportive foundation for Bitcoin in the medium term. For this reason, investors are advised to focus less on short-term price movements and more on broader macroeconomic developments.

Assessment

The Dollar Index falling to a four-month low stands out as an important development that could revive risk appetite across global markets. While historical examples show that periods of dollar weakness often coincide with upside potential for Bitcoin, investors are reminded of the importance of closely monitoring macroeconomic developments and the actions of central banks.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post Does the Decline in the Dollar Index Support Bitcoin? appeared first on Coin Engineer.

Five-Day Inflow Streak Signals Investor Confidence

Bitcoin ETFs posted five straight days of inflows starting June 9, with over $1.3 billion entering the market. According to Farside Investors, Friday alone saw $301 million in net inflows, signaling robust confidence in Bitcoin despite recent shocks.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

While the cryptocurrency briefly dropped 3% following Israel’s airstrikes on Iran, it bounced back quickly from $103,000 to hover around $105,000 — reflecting market resilience under pressure.

Falling Dollar Boosts Bitcoin’s Outlook

Nic Puckrin of Coin Bureau emphasized the macroeconomic view: “It’s not geopolitics, but the U.S. dollar index (DXY) that truly drives Bitcoin. With DXY falling below 100 — a three-year low — Bitcoin stands to benefit.”

Still, the risk of Iran closing the Strait of Hormuz, through which 20% of the world’s oil flows, could trigger short-term price shocks across risk-on assets like cryptocurrencies.

New Highs on the Horizon?

Despite global uncertainty, Bitcoin is trading just 6% below its all-time high of $112,000, reached on May 22. This resilience has analysts predicting that a breakout could be imminent.

As macroeconomic instability grows and trust in traditional finance weakens, capped-supply assets like Bitcoin are becoming increasingly attractive to both retail and institutional investors.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin ETFs Attract $1.3B in Inflows Despite Geopolitical Chaos appeared first on Coin Engineer.

The US Dollar Index (DXY) fell 10% from its 2025 peak, dropping to 99.40. The decline accelerated with Donald Trump’s inauguration. Tariffs imposed on allied countries like Canada and Mexico sparked market concerns. As a result, reciprocal tariffs announced on “Independence Day” intensified selling pressure. However, Moody’s downgraded the US credit rating to AA1 on Friday, stripping it of its last Triple-A rating. Moody’s joined S&P Global in 2011 and Fitch in 2023 in lowering the rating. 

The House of Representatives passed the “Big Beautiful Bill” with a 215-214 vote. The bill extends the 2017 tax cuts, exempts overtime and tips from taxes, and removes millions from programs like Medicare. The Congressional Budget Office (CBO) estimates the bill will add $3.8 trillion to the deficit over 10 years, increasing the US’s $36.2 trillion debt. The budget deficit is expected to reach 7% of GDP. Consequently, Trump’s tariffs and fiscal health concerns are pressuring the USD. 

DXY Technical Analysis and Market Dynamics 

In the DXY’s daily chart, bullish momentum has weakened. The RSI’s decline has slowed. Support is at 99.10, with resistances at 100 (21 DMA), 100.80 (23.6% Fibonacci), and 101.35 (50 DMA). Without a new trigger, the downward pace may slow. However, investors remain cautious due to fiscal and tariff uncertainties. The Senate’s approval process for the bill will influence the USD’s direction. 

Economic data has had limited impact on the DXY. Federal Reserve officials Susan Collins and Raphael Bostic indicated no rush to cut rates. Tuesday’s Conference Board consumer confidence report is critical. Recent data showed declining confidence due to labor market and inflation concerns. Still, markets are focused on debt growth and tariff effects. 

Trump’s tariffs have shaken global investors’ confidence in US assets. Moody’s downgrade heightened debt sustainability concerns. As a result, gold prices surged 23% due to safe-haven demand. The EUR strengthened against the USD, reaching 1.138. Investors are questioning US fiscal policies and debt burdens. Fears that tariffs could slow economic growth are fueling the DXY’s decline. Markets are watching the Senate’s stance on the bill and the Federal Reserve’s rate decisions. 

***NOT INVESTMENT ADVICE***

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post DXY Plummets: PMI, Tariffs, and Bill Create Pressure  appeared first on Coin Engineer.

According to the White House, both nations agreed to lower their respective tariffs by 24%, bringing them down to 10%, starting May 14. Speaking at a press conference in Geneva, US Treasury Secretary Scott Bessent emphasized that neither side wants to pursue further economic decoupling.

Bitcoin Nears Record High as Risk Sentiment Improves

Aurelie Barthere, principal research analyst at crypto intelligence firm Nansen, noted that the easing of trade tensions removes the risk of a “sudden re-escalation,” making room for risk assets to catch up with Bitcoin’s gains.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

“Bitcoin is already trading within 4.8% of its all-time high of $109,800,” she said. “With this trade breakthrough, altcoins, US equities, and the Dollar Index (DXY) are now well-positioned for a rebound.”

Barthere also pointed out that Bitcoin has outperformed traditional risk assets recently due to its independence from tariff-related vulnerabilities.

Tax Cuts Could Fuel Second Wave of Rally

Another major catalyst may be on the horizon. Bessent hinted that a tax relief package could be unveiled by mid-July. According to Barthere, this package would need to go beyond extending expiring cuts — it must also include new income and corporate tax reductions to sustain the rally.

Paired with emerging bull flag patterns on the weekly chart, analysts are already forecasting a potential surge in Bitcoin price towards $150,000, should all elements align.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Is a Rise Coming for Bitcoin and Altcoins? appeared first on Coin Engineer.

Second Consecutive Day of Decline in Crypto Markets

The cryptocurrency markets experienced their second consecutive day of decline as the DXY reached new highs and investors expressed concerns about the Federal Reserve‘s monetary policy plans. While the DXY’s initial weakness early in the week briefly pushed Bitcoin to $102,400, the index subsequently reversed course and climbed to 109.

Treasury Yields Rise Amid Inflation Concerns

The increase in U.S. Treasury yields has also negatively impacted the markets. The 10-year Treasury yield rose to 4.7%, while the 30-year yield reached 4.93%. These increases reflect market participants’ concerns that inflation will remain elevated. The new administration’s expansionary economic policies could potentially increase budget deficits, further fueling these concerns and potentially leading to higher interest rates on long-term U.S. debt instruments.

Bitcoin Price and DXY Strengthening

Bitcoin prices have been adversely affected by the strengthening DXY. As of this writing, Bitcoin is trading at $94,000. Analysts caution that if the price breaks below the $90,000 support level, it could face further short-term declines.

Forward-Looking Expectations

Jamie Coutts, Chief Crypto Analyst at Real Vision, suggests that the current DXY strength may be less significant in the long term. Coutts believes that the incoming Trump administration’s potential increase in liquidity and crypto-friendly stance could create positive implications for Bitcoin.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Tests New Lows: Is $80,000 Possible? appeared first on Coin Engineer.

Targets and Support Levels

Pseudonymous analyst venturefounder stated on X (formerly Twitter) that ETH is close to completing this pattern. If Ethereum confirms $3,800 as support, the first price target is $5,349, followed by $6,457, and finally $7,238.

This represents a potential 97% increase from its current price of $3,669, as per CoinMarketCap data.

Despite ETH’s 47% rally since early November, the analyst pointed out that its price hasn’t “exploded” yet due to the strength of the U.S. Dollar Index (DXY). Historically, significant breakdowns in the DXY have preceded major crypto market surges.

The DXY is currently at 105.78, and a potential decline could pave the way for ETH to break out significantly.

Other Analyst Predictions

• Titan of Crypto highlighted that the weekly Ichimoku Golden Cross indicates a target of $5,800 for ETH.
• Wolf predicted ETH could reach $9,000-$10,000 by May 2025.
• Doctor Profit advised his followers that “Anything below $4K is a gift for the mid-term,” emphasizing that the current levels still present a good buying opportunity.

Record Inflows for Spot Ether ETFs

On Nov. 29, spot Ether ETFs in the United States recorded an all-time high for daily inflows. A total of $332.9 million flowed into these ETFs, surpassing the previous record of $295.5 million set on Nov. 11 by $37.4 million.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Is Ethereum Heading to $7,200? appeared first on Coin Engineer.

In a Twitter statement, economist Zeberg said that the dollar’s loss of strength would bring new life to the cryptocurrency market.

The economist also stated that low bond yields in the US and the dollar’s appreciation against other fiat currencies have created an excellent environment for the rise of risk assets like cryptocurrencies.

Revealing the Altcoin

Zeberg, who is eyeing JasmyCoin (JASMY) to be included in the cryptocurrency rally, stated that the third wave is being experienced in crypto.

Zeberg stated that the next stage will come towards the summer as the dollar index (DXY) falls, and it will find support in the fall.

The economist also shared that JASMY could be as low as $0.3 for him, but he wants it to go higher.

Considering that JASMY is currently trading at around $0.02 according to CoinGecko data, the economist expects a minimum 15x performance.

The post Renowned Economist Reveals Bullish Conditions and Names Altcoin with “At Least” 15x Potential appeared first on Coin Engineer.

Bitcoin has largely traded between $60,000 and $70,000 since mid-March. Alfred believes Bitcoin will break above this range in the near future.

“The DXY dollar index hit resistance at 106 as expected. A reversal to 102-103 would turbocharge this rally. The timing is also right because Bitcoin is ready to move to $90,000 in the short term. In the long term, I expect DXY to fall to 92, perhaps by the end of 2025,” Alfred said.

Investors tend to move away from riskier assets like Bitcoin when the dollar strengthens. Bitcoin and altcoins have generally moved in the opposite direction of DXY over the past few years.

The post Well-Known Analyst Reveals Short-Term Bitcoin Price Target appeared first on Coin Engineer.