US Dollar Takes a Nose Dive: Is Bitcoin Finally Ready to Stop Napping?

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Key points:

  • The US dollar index (DXY) is not just below its average—it’s taking up residency in the basement, more than six points under the 200-day moving average. Mazel tov, DXY, really earning that participation trophy!

  • Supposedly, Bitcoin’s supposed to benefit whenever the dollar takes a beating. It’s like the dollar sneezes and Bitcoin gets a raise. In theory.

  • And yet—the BTC price? About as responsive as my neighbor after I let his dog out. History says it should move, but history apparently has dinner plans tonight.

So, Bitcoin (BTC) has a golden opportunity while the U.S. debt balloons up and the dollar is—we’re being generous here—performing about as well as a coffee shop WiFi connection. The greenback’s slumping to historic lows, and Bitcoin’s just sitting there, twiddling its virtual thumbs.

The researchers over at CryptoQuant dropped some spicy takes on July 8: “Inverse correlation with DXY!” Sure, that sounds nice, but let’s see some action, you know? Anyone? Bueller?

BTC’s Tailwinds: More Like a Breeze, Honestly 🌬️

Ordinarily, when the dollar drops, Bitcoin’s supposed to break out the party hats. But right now, it can’t even muster a kazoo. DXY hit 96.377 on July 1– its lowest since early 2022. “A level not seen in over three years,” the analysts say. You know, three years—that’s, like, nine crypto lifetimes.

And get this: For the DXY, compared to its 200-day moving average, we’re talking about zones last visited 20+ years ago! Did anyone bring a time machine? Anyone? No? Forget it.

“While the U.S. debt reaches a new all-time high,” says contributor Darkfost, “the DXY has just hit a historically weak level.” And you know what that means, right? Actually, I don’t either, but it sounds very dramatic! 🎭

“Although this may appear alarming at first glance, it actually tends to benefit risk assets like Bitcoin.”

Supposedly, Bitcoin and DXY used to be like a seesaw—one goes down, the other goes up. But these days? The seesaw’s just stuck in the mud.

Here’s a chart allegedly showing all this happening. If you look really closely, you might even see where you lost your lunch money back in 2018.

“Periods where DXY trades below its 365-day moving average.” Sounds technical, but honestly, at this point, I’d trust a squirrel to forecast the next bull run.

“Looking at historical data, it becomes clear that such periods have been highly favorable to BTC. We are currently in a phase where the weakness of the DXY could fuel a new rise in BTC but the price didn’t reacted yet.”

Dollar’s Tragic Performance: A Win for Crypto? 💸

According to CryptoMoon, the good ol’ greenback’s slide picked up speed thanks to the latest U.S. trade tariffs. Well, at least something’s accelerating.

Bitcoin fans are out here blaming “fiat currency” for everything short of slow elevators. Crypto’s time to shine? Maybe. Or maybe we’re just waiting for something—anything—to happen.

“If the dollar’s very strong, it makes the case to own it,” says economist Lyn Alden. Yes, Lyn, and if my grandmother had wheels, she’d be a bicycle.

“If total credit and dollars in the system keep increasing over the next five, seven, ten years, that’s one of the macro factors that makes Bitcoin useful to own.”

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2025-07-09 12:28