DXY Index Sees Sharpest Weekly Drop Since 2013, Impacting Bitcoin
The DXY Index has seen a significant decline, marking one of its sharpest weekly drops since 2013. It measures the U.S. dollar's strength against major currencies.
- The index's drop exceeded a negative four standard deviation move, a rare event occurring only three times previously in bitcoin's history.
- Notable past occurrences include:
- November 2022: Bitcoin hit a low of $15,500 during the FTX collapse.
- March 2020: Bitcoin briefly fell below $5,000 amid the COVID-19 pandemic.
- 2015 bear market: Bitcoin traded around $250.
- Each instance coincided with a bitcoin bottom, followed by significant price increases.
- The current DXY decline is faster than during President Trump's first term, which aligned with the 2017 bitcoin bull run.
- A declining DXY Index typically favors risk assets; however, it remains above 100, currently at 103.8.
