Analysis: US Dollar Index Approaching Breakout of Range Top, BTC Under Pressure or Continuing Negative Correlation with DXY

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

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

Analysts point out that if this structural breakout is confirmed, it typically triggers trend-following capital to further push the dollar higher. Historical data shows a clear negative correlation between Bitcoin and the US Dollar Index, with a stronger dollar generally weighing on dollar-denominated risk assets. The market believes that the hawkish stance from the Federal Reserve has strengthened the dollar's support narrative and may further drive capital flows toward safe-haven assets and dollar-denominated assets. (CoinDesk)