Will Bitcoin catch up? BTC price was $40K when the dollar was this weak last time

BTC/USD vs. U.S. dollar index (DXY) chart.

Looking back, the last time that DXY traded at 100 remained in mid-April 2022. At the time, Bitcoin hovered at around $40,000. BTC/USD vs. U.S. dollar index (DXY) chart. Source: TradingViewCollect this post as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.Magazine: Should you orange tablet children? The case for Bitcoin kids booksThis article does not contain investment recommendations or recommendations. Every financial investment and trading relocation involves danger, and readers ought to conduct their own research when deciding.

Bitcoin (BTC) may see a “parabolic curve” start thanks to U.S. dollar weak point as the greenback falls to three-month lows.In a tweet on July 11, popular trader Moustache suggested that the time is ideal for BTC price history to repeat itself.DXY “most crucial chart” for Bitcoin this yearBitcoins formerly strong inverse connection to dollar strength has actually waned this year, but its most current movements are a talking point amongst traders.Data from Cointelegraph Markets Pro and TradingView reveals the U.S. dollar index (DXY) on the way to screening assistance at 100 for the very first time in months.Previously above 105, the greenback has actually faced stiff resistance after last years twenty-year highs.” U.S. dollar index (DXY) annotated chart. With inflation easing off, this looks ever more most likely in spite of a Hawkish Federal Reserve.The July 12 release of the Consumer Price Index (CPI) for the month prior came in listed below expectations, offering additional fuel for danger assets.Fellow trader Mikybull Crypto forecasted that the downward DXY trend would continue, with BTC/USD hitting $35,000 as a result.Bears in disbelief90 next on DXY #Bitcoin to 35k$ pic.twitter.com/TczJMGKh5I— Mikybull Crypto (@MikybullCrypto) July 12, 2023

Bitcoin (BTC) might see a “parabolic curve” start thanks to U.S. dollar weak point as the greenback falls to three-month lows.In a tweet on July 11, popular trader Moustache suggested that the time is right for BTC price history to repeat itself.DXY “most essential chart” for Bitcoin this yearBitcoins previously strong inverse connection to dollar strength has actually subsided this year, however its most current movements are a talking point among traders.Data from Cointelegraph Markets Pro and TradingView reveals the U.S. dollar index (DXY) on the way to screening assistance at 100 for the first time in months.Previously above 105, the greenback has dealt with stiff resistance after last years twenty-year highs. With inflation abating, this looks ever more most likely regardless of a Hawkish Federal Reserve.The July 12 release of the Consumer Price Index (CPI) for the month prior came in listed below expectations, providing more fuel for risk assets.Fellow trader Mikybull Crypto predicted that the down DXY trend would continue, with BTC/USD striking $35,000 as a result.Bears in disbelief90 next on DXY #Bitcoin to 35k$ pic.twitter.com/TczJMGKh5I— Mikybull Crypto (@MikybullCrypto) July 12, 2023

” DXY showing technical weakness combined with a programmatic supply reduction of Bitcoin issuance may lead to an outsized price response for Bitcoin post-halving.” U.S. dollar index (DXY) annotated chart. Source: Josh Olszewicz/TradingViewApril levels returnAdding a broader perspective, William Clemente, co-founder of crypto analysis firm Reflexivity Research, presented the year-on-year modification in DXY against how BTC/USD behaved through the years.Related: Bitcoin exchanges now hold the very same BTC supply share as in late 2017Since everyone wants to talk about DXY (United States dollar) weak point, heres Bitcoins rate outlined against the YoY change in the DXY: pic.twitter.com/voJAfeF1ok— Will Clemente (@WClementeIII) July 12, 2023

Source: Josh Olszewicz/TradingViewApril levels returnAdding a more comprehensive point of view, William Clemente, co-founder of crypto analysis company Reflexivity Research, presented the year-on-year modification in DXY versus how BTC/USD acted through the years.Related: Bitcoin exchanges now hold the very same BTC supply share as in late 2017Since everyone wants to talk about DXY (United States dollar) weakness, heres Bitcoins cost outlined against the YoY modification in the DXY: pic.twitter.com/voJAfeF1ok— Will Clemente (@WClementeIII) July 12, 2023

Other Questions People Ask

Will Bitcoin catch up if the dollar index continues to weaken?

If the U.S. dollar index (DXY) continues to decline, Bitcoin may indeed catch up to its previous price levels. Historical data suggests that when the DXY was around 100, Bitcoin traded at approximately $40,000. As inflation eases and the dollar weakens, traders are speculating that BTC could see a resurgence, potentially reaching similar price points again.

What does the current DXY trend mean for Bitcoin's price?

The current downward trend in the DXY indicates a potential bullish phase for Bitcoin. As the dollar weakens, Bitcoin often benefits due to its historical inverse correlation with the dollar's strength. Traders are closely monitoring this relationship, as a continued decline in the DXY could lead to significant upward movement in BTC prices, possibly revisiting levels around $35,000 or higher.

How does Bitcoin's historical performance relate to the DXY?

Bitcoin's historical performance shows a strong inverse correlation with the DXY, particularly when the dollar index trades at lower levels. For instance, during periods when the DXY was around 100, Bitcoin's price hovered around $40,000. This pattern suggests that as the dollar weakens, Bitcoin may experience a resurgence, making it crucial for investors to track DXY movements closely.

What factors could influence Bitcoin catching up to its previous highs?

Several factors could influence Bitcoin's ability to catch up to its previous highs, including the ongoing weakness of the U.S. dollar and changes in inflation rates. The recent Consumer Price Index (CPI) data indicates easing inflation, which could further support risk assets like Bitcoin. Additionally, programmatic supply reductions of Bitcoin may create upward pressure on its price, potentially leading to a significant rally.

Is it a good time to invest in Bitcoin given the current economic conditions?

While current economic conditions suggest potential for Bitcoin to catch up to previous highs, it's essential for investors to conduct thorough research before making any decisions. The weakening dollar and favorable CPI data may create a conducive environment for BTC growth. However, as with any investment, risks remain, and market conditions can change rapidly, so caution is advised.