Crypto trader CarpeNoctom outlined his thoughts on how US Dollar Index (DXY) could help shape the bull for Bitcoin price. With the sweeping tariffs from Donald Trump, the stock and crypto markets have become correlated and are sensitive to macroeconomic developments. Regardless, the top trader notes that a breakdown of the US Dollar Index below a key support zone could spark the bull run for BTC price.
Crypto Trader Says Breakdown of DXY Below 100 Could Spark Bitcoin Price Rally
The US Dollar Index (DXY) has crashed 8% in the past 80 days, dropping from a high of 110.176 to 101.267. In the same period, Bitcoin price has shed 13%. Typically, a weak US dollar promotes risk-on behavior, allowing the stock market to rally. However, the recent intervention of Trump and his tariffs on more than 100 of US trading patterns has caused the US stock markets and BTC price to collapse..
Top trader CarpeNoctom explains that the recent crash from 103 to 101 should see crypto markets rally. Through his chart, the analyst notes Bitcoin price and the broader crypto market could ‘explode higher,’ aka restart the bull run.
Arthur Hayes adds credence to this bullish Bitcoin price prediction by noting that BTC should decorrelate from the US tech stock.
Why Collapsing DXY, Decorrelation from US Tech Stocks is Good for BTC
Arthur Hayes, the recently pardoned founder of BitMEX exchange, said that he “loved tariffs.” Hayes explained,
“Global imbalances will be corrected, and the pain papered over with printed money, which is good for $BTC.”
The tariffs have caused the dollar to weaken while prompting foreign investors to sell US tech stocks to “bring money home.” Hayes notes that this is good for Bitcoin and gold over the medium term.
Key Levels to Watch as Bitcoin Consolidates
According to TraderMagus, a popular analyst and trader, the two key Bitcoin price levels to watch include $80K and $90K. Magus explains that a risk-on scenario would appear if BTC drips below $80K or if price climbs to $90K and shows strength above this level.
The trader explains that intraday plays are the way to go and that investors should not get their capital chopped up.
“I think it’s a massive buy opportunity once the dust settles on all this for equites & btc”
To conclude, the crypto market outlook remains uncertain in the short term. In the mid-term, a sweep of $80K followed by a recovery could send Bitcoin’s value to $90K. However, a rejection at $90K could push BTC back into consolidation. On the contrary, a bearish outlook involves a breakdown of the $80K level without any support from buyers. Such a development could see the price crash to $69K, the next key foothold, where demand from long-term investors could come back.
Frequently Asked Questions (FAQs)
A breakdown of the DXY below 100 could spark a bull run for Bitcoin price, as a weak US dollar promotes risk-on behavior.
According to TraderMagus, the two key levels to watch are $80K and $90K, which could indicate a risk-on scenario.
A sweep of $80K followed by a recovery could send Bitcoin price to $90K, but a rejection at $90K could push BTC back into consolidation.
Akash Girimath
Senior Cryptocurrency Analyst & Market Strategist
Engineer-turned-analyst Akash Girimath delivers data-driven insights on cryptocurrency markets, DeFi, and blockchain technology for platforms like AMBCrypto and FXStreet. Specializing in technical analysis, on-chain analytics, and risk management, he empowers institutional investors and retail traders to navigate market volatility and regulatory shifts.
A hands-on strategist, Akash merges active crypto portfolio management with research on Web3, NFTs, and tokenomics. At AMBCrypto, he led cross-functional teams to redesign content frameworks, achieving record-breaking traffic growth through scalable editorial strategies. His analyses dissect market sentiment, investment strategies, and price predictions, blending macroeconomic trends with real-world trading expertise.
Known for mentoring analysts and optimizing workflows for high-impact reporting, Akash’s work is cited across global crypto publications, reaching 500k+ monthly readers. Follow his insights on YouTube, X, and LinkedIn for cutting-edge perspectives on decentralized ecosystems and crypto innovation.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/top-trader-uses-us-dollar-index-to-explain-when-bitcoin-price-will-restart-bull-run/
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