Analysis: Dollar index approaches breakout of range top, BTC under pressure may continue negative correlation with DXY

Odaily News Bitcoin, often seen as a "counterpart" to the US Dollar Index (DXY), is facing sustained pressure as the market watches for a potential breakout above the top of its 13-month trading range.

Data shows that Bitcoin has weakened for three consecutive trading days, with prices hovering around $63,900, while the broader crypto market is also under general pressure. Meanwhile, the DXY rose 0.26% to 100.66, extending the previous session's 0.8% gain and nearing the critical breakout threshold of the range.

Analysts point out that if this structural breakout is confirmed, it typically triggers trend-following capital to further boost the dollar's momentum. Historical data indicates a clear negative correlation between Bitcoin and the DXY, with a stronger dollar often weighing on dollar-denominated risk assets. The market believes that the Federal Reserve's hawkish stance reinforces the fundamental support for the dollar and may further drive capital flows toward safe-haven assets and dollar-denominated assets. (CoinDesk)