The current state of the US dollar is not among the best, as the US-China war extends amid tariff discussions. Meanwhile, this economic turmoil is high, and the BTC price is bouncing, building an image as a safe haven. However, Bitcoin’s early major crash could not be ignored, as the digital asset struggled under tariff turmoil before recovering recently.
US Dollar Index Declines at 3-Year Low, While BTC Price Regains $80K Support
The US Dollar Index (DXY) has declined below the 100 mark for the first time in the last three years, showcasing the economic uncertainty in the country. At present, it is at 99.45 and even touched 99.01 briefly before recovering. With that, it marked the lowest day since 2022.
Since Donald Trump has joined the White House for the second time, the US currency index has declined by more than 7% and more than 2% in the last week alone, and Trump’s trade war is the catalyst.
Meanwhile, the 10-year US Treasury yield has surged, which is concerning. Typically, the DXY and yield move in the same direction. However, they are opposite now, signaling investors’ carrying diverted sentiments on the dollar.
Interestingly, the BTC price gained upward momentum at the same time, jumping from a low of $74.5k to $82.5k today. Experts believe that investors are marching toward digital assets as traditional finances face uncertainty and significant risks.
Bitcoin vs US Dollar: Is this BTC’s Time to Shine?
Although Bitcoin is gaining significant momentum, the investors are divided between this digital asset and the yellow metal, Gold. The investors’ focus on this hard asset has pushed Gold towards new ATH, while the BTC price still faces uncertainty and high volatility.
Experts believe Asian investors are dumping US assets like stocks and bonds and relocating to gold. This also puts downward pressure on the currency. The experts are divided on their Bitcoin price prediction; some anticipate a surge to $96k as the investors, especially larger whales, are focusing on the digital asset, while others anticipate a further downtrend.
China’s decision to implement a counter 125% tariff on the US intensifies the trade war. The future of BTC vs the Dollar and other assets remains uncertain.
Frequently Asked Questions (FAQs)
The decline in the US Dollar Index is due to investors’ decreasing confidence in the asset amid the Trump trade war.
Despite its earlier crash, investors are moving towards Bitcoin, boosting its price recovery, but Gold is shining in this economic crisis.
The investors’ shifting interest from US assets opens the possibility for a BTC price rally. Some experts anticipate it will rise to $96k next.
Pooja Khardia
With a deep-seated passion for reading and five years of experience in content writing, Pooja is now focused on crafting trending content about cryptocurrency market.
As a dedicated crypto journalist, Pooja is constantly seeking out trending topics and informative statistics to create compelling pieces for crypto enthusiasts. Staying abreast of the latest trends and advancements in the field is an integral part of her daily routine, fueling a commitment to delivering timely and insightful coverage
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/trending/us-dollar-declines-to-3-year-low-while-btc-price-bounces-is-it-bitcoins-time-to-shine/
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