As Bitcoin trades below its all-time highs, another major shift is happening quietly in the background: the U.S. dollar is rapidly losing ground.
According to data shared by Koyfin and highlighted by prominent Bitcoin advocate Jameson Lopp, the U.S. Dollar Index (DXY) has declined by over 10% since the start of the year. This dramatic drop, visible in a steep downward trend on Koyfin’s chart, suggests that the dollar is facing its weakest point in years—even as Bitcoin has remained relatively stable.
“Bitcoin isn’t near all-time highs, the dollar is at all-time lows,” Lopp noted in a tweet, pointing to the growing gap between the dollar’s purchasing power and digital assets like Bitcoin.
The sharp 10.1% decline in the DXY reflects weakening confidence in the dollar’s strength on global markets. For investors, this trend revives familiar discussions about inflation, monetary policy, and the appeal of decentralized alternatives like Bitcoin.
Although Bitcoin hasn’t surged to previous record levels, its relative stability against a weakening fiat currency is fueling arguments that it could be a safer long-term store of value. The inverse correlation between the dollar’s fall and Bitcoin’s long-term potential is once again coming into focus as macroeconomic uncertainties persist.
With the Federal Reserve holding rates steady and the global economy under pressure, some analysts believe further erosion in the dollar could give Bitcoin a fresh catalyst—especially among institutional investors seeking hedges outside traditional finance.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoin-stays-steady-while-u-s-dollar-plunges-10-in-2025/