Analysis: The US dollar index is approaching the upper limit of the breakout range, and BTC may continue to be under pressure, maintaining a negative correlation with DXY
Bitcoin, seen as the "rival" to the US Dollar Index (DXY), is facing ongoing pressure as the market focuses on the imminent breakout of the DXY from a 13-month trading range.
Data shows that Bitcoin has weakened for the third consecutive trading day, hovering around $63,900, with the overall cryptocurrency market also under pressure. Meanwhile, the DXY rose 0.26% to 100.66, continuing the previous trading day's increase of 0.8%, and is nearing the edge of a key breakout range.
Analysis indicates that if this structural breakout is confirmed, it will typically trigger trend-following funds to further boost the dollar's performance. Historical data shows a clear negative correlation between Bitcoin and the US Dollar Index; a stronger dollar usually suppresses risk assets priced in dollars. The market believes that the Fed's hawkish stance has reinforced the logic of dollar support and may further drive funds towards safe-haven assets and dollar-denominated assets.
-- Price
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