{"id":62471,"date":"2026-01-26T17:00:32","date_gmt":"2026-01-26T14:00:32","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=62471"},"modified":"2026-01-26T14:33:07","modified_gmt":"2026-01-26T11:33:07","slug":"dxy-falls-what-this-means-for-bitcoin","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/dxy-falls-what-this-means-for-bitcoin\/","title":{"rendered":"DXY Falls: What This Means for Bitcoin"},"content":{"rendered":"<p data-start=\"300\" data-end=\"670\">The market actually shows that the US Dollar Index (<strong>DXY<\/strong>) has dropped to a four-month low. Speculation over a potential \u201cyen intervention\u201d between the US and Japan has intensified pressure on the dollar. At the moment, the DXY stands at 97.1, marking its weakest performance since September. Analysts say this could create upside potential for risk assets like <a href=\"https:\/\/coinengineer.net\/blog\/bitcoin-falls-to-87000-u-s-shutdown-risk-back-in-focus\/\"><strong>Bitcoin<\/strong><\/a>.<\/p>\n<p data-start=\"672\" data-end=\"1000\">DXY, which measures the dollar\u2019s value against a basket of six major currencies, has been under pressure recently. The dollar\u2019s worst annual performance since 2017 and a weak start to the year have unsettled markets. As it happens, this isn\u2019t the only story\u2014safe-haven assets like gold and silver are hitting new record highs.<\/p>\n<p data-start=\"1002\" data-end=\"1239\">Analyst Adam Kobeissi noted:<\/p>\n<blockquote>\n<p data-start=\"1002\" data-end=\"1239\">\u201cIf the dollar closes in the red this year, it would mark its first consecutive annual loss since 2006-2007. Look closely, and movements in gold and silver reveal fiat currency depreciation very clearly.\u201d<\/p>\n<\/blockquote>\n<p data-start=\"1241\" data-end=\"1498\">Fortunately, the latest decline is linked to potential yen intervention. Reuters reported that the New York Fed conducted rate checks as a signal of possible coordinated action with Japan. This pushed the yen to a two-month high and weighed on the dollar.<\/p>\n<p data-start=\"1500\" data-end=\"1863\">Investors are also cautious ahead of the upcoming Fed meeting and a potential announcement from President Trump regarding Jerome Powell\u2019s successor. Truthfully, despite Trump\u2019s repeated calls for aggressive rate cuts, markets are not expecting an imminent policy shift. Data from the CME FedWatch Tool shows the probability of a 25 basis point cut at just 2.8%.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/dxy-falls-what-this-means-for-bitcoin\/#Analysts_Warn_of_Further_DXY_Weakness\" title=\"Analysts Warn of Further DXY Weakness\">Analysts Warn of Further DXY Weakness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/dxy-falls-what-this-means-for-bitcoin\/#How_Could_Bitcoin_Be_Affected\" title=\"How Could Bitcoin Be Affected?\">How Could Bitcoin Be Affected?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"1865\" data-end=\"1909\"><span class=\"ez-toc-section\" id=\"Analysts_Warn_of_Further_DXY_Weakness\"><\/span>Analysts Warn of Further DXY Weakness<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"1911\" data-end=\"2211\">This market tension is prompting analysts to warn of additional downside risks. Rashad Hajiyev notes that the upcoming FOMC meeting could trigger a breach of the index\u2019s 18-year support level:<br data-start=\"2103\" data-end=\"2106\" \/>\u201cDXY could head to 85 first, then 75. At that point, dollar selling may fuel gains in gold and silver.\u201d<\/p>\n<p data-start=\"2213\" data-end=\"2387\">Ted Pillows points out a descending triangle pattern on the DXY chart. Technically, this formation signals continued bearish momentum, raising concerns of a deeper decline.<\/p>\n<h2 data-start=\"2389\" data-end=\"2426\"><span class=\"ez-toc-section\" id=\"How_Could_Bitcoin_Be_Affected\"><\/span>How Could Bitcoin Be Affected?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2428\" data-end=\"2664\">Bitcoin and DXY have historically shown an inverse correlation, closely watched by market participants. As the dollar weakens, investors tend to shift toward riskier assets. Of course, this creates upward potential for Bitcoin prices.<\/p>\n<p data-start=\"2666\" data-end=\"3006\">Yen strength and dollar weakness could create short-term risks. Bitcoin\u2019s correlation with the Japanese yen is near record highs. If yen intervention occurs, short-term risks may arise, but long-term dollar weakness could benefit Bitcoin. Analyst Donny notes that if DXY falls below 96.2, the effects may be seen around April or May 2026:<\/p>\n<p data-start=\"3008\" data-end=\"3339\">\u201cBTC can still move upward, and I believe it will. The DXY decline, combined with MSTR, supports a mean reversion move. If the 96.2 support breaks, we could see significant upward movement in the first half of the year. Once BTC surpasses 107.4K and MSTR 231, dollar weakness will push targets significantly higher,\u201d Donny added.<\/p>\n<p data-start=\"3341\" data-end=\"3589\">In short, the next few weeks may determine both the dollar\u2019s direction and the trajectory of the crypto market. Essentially, market participants are hedging risk while chasing opportunities, which could translate into upward momentum for Bitcoin.<\/p>\n<p data-start=\"3341\" data-end=\"3589\"><em>Also, in the comment section, you can freely share your comments and opinions about the topic. Additionally, don\u2019t forget to follow us on\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"noreferrer noopener\">Telegram<\/a>,\u00a0<a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"noreferrer noopener\">YouTube<\/a>\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\">Twitter<\/a>\u00a0for the latest news and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The market actually shows that the US Dollar Index (DXY) has dropped to a four-month low. Speculation over a potential \u201cyen intervention\u201d between the US and Japan has intensified pressure on the dollar. At the moment, the DXY stands at 97.1, marking its weakest performance since September. Analysts say this could create upside potential for<\/p>\n","protected":false},"author":36,"featured_media":34821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,2],"tags":[27471,840,10240,27043,10404,1181,27472],"class_list":["post-62471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-news","tag-bitcoin-potential","tag-crypto-market","tag-dxy-index","tag-gold-silver","tag-risk-assets","tag-us-dollar","tag-yen-intervention"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>DXY Falls: What This Means for Bitcoin - Coin Engineer<\/title>\n<meta name=\"description\" content=\"DXY drops to a four-month low amid yen intervention talk; dollar weakness could create upside potential for Bitcoin and crypto markets.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/dxy-falls-what-this-means-for-bitcoin\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DXY Falls: What This Means for Bitcoin - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"DXY drops to a four-month low amid yen intervention talk; 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