Experts suggest that the potential rise of Bitcoin 
$77,690 may be linked to the recent declines in the US Dollar Index (DXY). Historical data indicates that declines of 2.5% or more in the DXY have historically triggered an average increase of 37% in Bitcoin within 90 days. Cryptocurrency strategist Jamie Coutts emphasizes that this trend, when combined with increased liquidity, could signal new peaks for Bitcoin. While analyses suggest Bitcoin could reach record levels by May, there are also signs of recovery in the altcoin market.
Historical Impacts of DXY and Its Relation to Bitcoin
Cryptocurrency market analysts are comparing the effects of DXY declines on Bitcoin with historical data. According to data shared by Jamie Coutts since 2013, Bitcoin has averaged a 37% gain within 90 days following sharp three-day declines in the DXY. This situation supports the hypothesis that a weakening dollar could drive investment toward riskier assets in global markets.
Movements in the DXY are often associated with liquidity expansion. Especially at bear market lows or during upward trends, a decline in the dollar is interpreted as a positive signal for the cryptocurrency market. Considering that the recent three-day decline followed significant losses in February, it is predicted that Bitcoin is entering a recovery phase.
Predictions for Bitcoin and Altcoins
Analysts indicate that if the downward trend in DXY continues, Bitcoin could break new records above the $87,881 level. Historical data shows that the cryptocurrency market has consistently demonstrated stable improvement in similar scenarios. In particular, assets within the Top 200 cryptocurrencies are expected to gain value leading up to May.
The altcoin market is being monitored with optimistic expectations despite the index’s performance. The overall increase in market liquidity is thought to accelerate price volatility for both Bitcoin and altcoins. However, experts urge caution among investors, noting that past data only covers a limited timeframe.
