cyrpto BTC, dollar, drop, Index, price, signals, surge Mark March 7, 2025 0 Comments

US Dollar Index drop signals BTC price surge

A sharp drop in the US dollar index could open the way to a Bitcoin price rally, according to Jamie Coutts, chief cryptography analyst at Real Vision.

In a post of March 7 on X, cost quoted historical evidence which indicate that notable declines in the DXY frequently align with the main high trends of Bitcoin (BTC). He carried out a backtest on the cases in which Dxy fell by more than 2% and discovered that Bitcoin had an average gain of 31.6% and a 94% victory rate in the next 90 days.

In addition, Bitcoin posted gains of 100% of the time, with an average of 37% yield, when the DXY dropped by more than 2.5%. Coutts thinks that Bitcoin will reach a new record of all time in May on the basis of these trends.

When you look at this recent movement in the DXY through a historical objective, it is difficult to be anything but optimistic. I executed a signal screen for negative movements of 3 days of more than -2% and -2.5% and I noticed that they all produced in the hollows of the Bitcoins (inflection points) or … pic.twitter.com/lc6izl5u2a

– Jamie cost CMT (@ jamie1coutts) March 6, 2025

DXY is frequently considered an opposite signal for risky assets such as Bitcoin because it measures the value of the US dollar compared to a basket of large currencies. Investors often turn to other value reserves, such as Bitcoin, when the dollar is weakening.

The recent decline in DXY coincides with market turbulence, which has been fueled by price in Canada and Mexico, as well as the renewed push of its administration for a strategic national crypto reserve and lighter regulations. At the same time, the next cryptography summit has stimulated industry speculation.

After the recent market of the market, Bitcoin is trade About $ 87,800, down 4% in the last 24 hours at the time of the press. But the trajectory of altcoins remains mixed. Although there has been a certain recovery in solid projects, the market as a whole still suffers from high sales.

According to COUTTS, the new hollows of 365 days in the TOP 200 Crypto reached 47%, a capitulation signal generally observed before bullish inversions. If historical trends take place, a downturn and increasing institutional trust can lead to Bitcoin and Altcoins in a period of sustained earnings.

Given the uncertainty surrounding the next actions of the federal reserve, macroeconomic problems can have an even greater impact on the management of the short -term market.