Bitcoin Falls Despite Weakening U.S. Dollar, Puzzles Analysts

Despite a 10% decline in the US Dollar Index over the past year, Bitcoin has unexpectedly dropped 13%, analysts from JPMorgan Private Bank report.

This unexpected decoupling raises questions about Bitcoin’s traditional correlation with the US dollar, impacting investor strategies and market predictions for cryptocurrency movements.

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Market reactions remain muted, with no official comments from major leaders or cryptocurrency exchanges. While cryptocurrencies like Ethereum and altcoins have not seen notable mention in the shift, the broader industry is observing Bitcoin’s lack of response to the weaker U.S. dollar with interest. The usual ripple effect across the market appears delayed or absent.

As of this report, Bitcoin (BTC) holds a price of $84,356.61, showcasing a market cap of $1.69 trillion, according to CoinDesk. Notably, its 24-hour trading volume reached approximately $49.69 billion, down by 5.49%. The cryptocurrency’s current market dominance is 58.62%, with its circulating supply nearing the maximum supply of 21 million. Over the past 90 days, Bitcoin experienced a decrease of 23.36%, indicating persistent volatility.

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“As of January 2026, there are no publicly available primary source quotes or statements from prominent individuals or leaders in the cryptocurrency space concerning the decoupling of Bitcoin from the US Dollar Index (DXY) amidst recent market trends.”

Historical Patterns Broken: Bitcoin’s Unusual Market Performance

Did you know? Historically, Bitcoin experienced significant rallies during past drops in the U.S. Dollar Index, such as eightfold increases in 2017 and sevenfold seizures in 2020, driven by liquidity injections.

The Coincu research team suggests that these market dynamics may prompt regulatory bodies to examine the underlying factors driving the decoupling. Efforts might emerge to closely analyze short-term capital flows and potential technological advancements that could impact Bitcoin’s future correlation with traditional financial indicators. The ongoing trend warrants further monitoring to elucidate whether this represents a temporary anomaly or a sustainable market shift.

Market reactions remain muted, with no official comments from major leaders or cryptocurrency exchanges. While cryptocurrencies like Ethereum and altcoins have not seen notable mention in the shift, the broader industry is observing Bitcoin’s lack of response to the weaker U.S. dollar with interest. The usual ripple effect across the market appears delayed or absent.