Analysis: US Dollar Index nears breakout at upper range, BTC under pressure or may continue its negative correlation trend with DXY
According to ChainCatcher, Bitcoin, which is regarded as the "counterpart" of the US Dollar Index (DXY), is under continued pressure as the market is watching the DXY approach the upper end of a 13-month consolidation range.
Data shows that Bitcoin has weakened for a third consecutive trading day, with the price hovering around $63,900. The overall crypto market is also generally under pressure. Meanwhile, DXY rose by 0.26% to 100.66, extending the previous trading day's 0.8% increase and is nearing the edge of a crucial range breakout.
Analysts point out that if this structural breakout is confirmed, it will typically trigger trend-following funds to further push the US dollar upward. Historical data indicates a clear negative correlation between Bitcoin and the US Dollar Index; a stronger dollar tends to put pressure on US dollar-denominated risk assets. The market believes that the Federal Reserve's hawkish tone has reinforced the support for the dollar and may further drive funds toward safe-haven and dollar assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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