The US Dollar Index (DXY) has recently dipped close to the 100 mark, a level historically associated with significant Bitcoin rallies, yielding gains of 500% or more. Analysts suggest that rising trade tensions and a potential weakening of the US dollar, particularly due to actions from China, could catalyze another Bitcoin bull run. Reports indicate that China's central bank is instructing state-owned banks to limit dollar purchases as the yuan weakens. While some believe this may harm the US economy, not all analysts agree, suggesting that the DXY remains steady near 104. The last occurrences of DXY falling below 100 in 2020 and 2017 coincided with major Bitcoin price increases, highlighting a potential pattern. A weakening DXY generally reflects a reduction in the dollar's value against other currencies, impacting US corporations and tax revenues. As Bitcoin nears the 82,000 mark, there is speculation that DXY fluctuating below 100 may create stronger incentives for investors to consider Bitcoin as a hedge against inflation and dollar depreciation.

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