The leading cryptocurrency Bitcoin is generally negatively correlated with the US dollar index (DXY).
BTC and DXY were moving in opposite directions and especially in 2022, DXY rose while Bitcoin was falling.
Downtrend in DXY helps Bitcoin to rise while Bitcoin tends to benefit from weak DXY.
Stating that this negative correlation between Bitcoin and DXY has been broken at this point, Crypto is Macro Now analyst Acheson Acheson said that despite the decrease in DXY, Bitcoin did not rise.
Speaking to Coindesk, Acheson stated that the break in the negative correlation will not last long and said, “Bitcoin cannot be indifferent to this decline in the dollar index for a long time.”
Stating that DXY has exhibited its worst performance since November, the analyst said that DXY has affected risky assets such as cryptocurrencies as well as global liquidity conditions.
“The negative correlation between DXY and BTC is likely to return soon, as dollar index fluctuations affect global liquidity conditions and risk assets, including cryptocurrencies.
A weaker dollar increases global liquidity, giving US dollar borrowers around the world more room to breathe.”
In this context, the analyst said that in the face of the decline of DXY, he thinks that Bitcoin will rise without being indifferent any longer.
Acheson drew attention to the fact that DXY may experience further declines, stating that the fundamental indicators for a long time show that the decline continues and will continue.
*Not investment advice.
