The DXY index has experienced one of its sharpest falls in a week since 2013. The index measures the strength of the US dollar against a basket of larger currencies.
According to Bloomberg data from the Global Macro Investor, the index’s percentage of a week has exceeded a negative four standard deviation movement-a rare event that has only taken three other times in Bitcoin’s (BTC) history.
These previous occurrences include November 2022, when Bitcoin hit his cycle of $ 15,500 during the FTX cohabitation; March 2020 in the middle of the covid 19 pandemic when Bitcoin cards dropped under $ 5,000; and 2015 Bear Market when Bitcoin traded about $ 250. Each time the DXY index suffered a fall larger than a -4 standard deviation, it coincided with a Bitcoin bottom, followed by significant price gains.
In addition, Coindesk Research emphasizes that the DXY index is currently falling at a faster speed than in President Trump’s first period -a period that was adapted to Bitcoin Bull Run 2017. A decrease in the DXY index tends to be favorable to risk state, but a DXY index over 100 is still considered strong at the moment of 103.8.
