{"content":"Bitcoin eyes gains as dollar index sinks to 21-year lows — Can BTC surge past all-time high? A weakening U.S. dollar is opening the door for a possible new surge in Bitcoin, stirring questions about whether one of finance’s most familiar patterns is about to play out again. That’s the view in a July 9 analysis shared by CryptoQuant contributor Darkfost, who points out that the U.S. Dollar Index has dropped to a historically weak level. It’s now sitting 6.5 points under its 200-day moving average, the largest gap seen in more than 21 years. Some traditional markets may be concerned about this, but history shows that a declining dollar often creates an environment that is favorable for risky assets like Bitcoin btc0.66%Bitcoin. As traders move their money to assets that might hold value better during currency stress, Bitcoin has frequently increased in value. For instance, when the DXY surged to a 20-year high of 114 in 2022, Bitcoin fell to roughly $16,000, but it bounced back above $40,000 when the dollar fell in late 2023. This trend has repeatedly occurred since 2015, with Bitcoin’s correlation to the dollar index typically ranging from -0.4 to -0.8.","images":[],"tags":[],"tradingPairs":["BTC/USDT"],"quotearticleid":0}