Bitcoin’s Unusual 2025 Decline Amid Dollar Weakness Sparks Market Reevaluation
In a surprising turn of events, Bitcoin (BTC) has defied historical trends by declining over 6% year-to-date in 2025 despite significant US Dollar weakness. This unexpected performance comes as the cryptocurrency shows signs of decoupling from its traditional correlation with Gold, potentially marking a new era in digital asset behavior. The development raises important questions about Bitcoin’s evolving role in global markets amidst changing economic conditions.
Bitcoin Declines in 2025 Despite Dollar Weakness, Shows Signs of Decoupling from Gold
Bitcoin (BTC) has shown weakness in 2025, declining over 6% year-to-date despite the US Dollar Index (DXY) sustaining a 9% loss. Historically, BTC and Gold have rallied during periods of Dollar weakness, with BTC posting average gains of 43%. However, BTC’s correlation with Gold has weakened, possibly due to its growing similarity with stocks amid global trade war tensions. The EXY has also reversed its losses at the expense of Bitcoin, US stocks, and the DXY. On Monday, BTC climbed above $88,000 for the first time since April, but the overall trend remains bearish. Ironically, despite the Dollar’s decline, which usually triggers gains for BTC, the top crypto has decoupled from its traditional safe-haven asset, Gold. The catch? The reasons behind this decoupling are still unclear, but it could be due to changing investor sentiment and market dynamics. Will BTC regain its correlation with Gold, or will it continue to decline in the face of Dollar weakness?
Firms Hold Over 3% of Bitcoin Supply, Eyeing Long-Term Gains
Firms with Bitcoin (BTC) on their balance sheets now control over 630,000 BTC, equivalent to more than 3% of BTC’s fixed 21 million supply. Major holders include Tesla, Block, Strategy, and BTC mining firms, signaling a shift from retail flows to strategic institutional positioning. This corporate accumulation supports the narrative of Bitcoin as a strategic reserve asset. Despite short-term market uncertainty, these institutional investments could support BTC gains in the long term. On Monday, BTC crossed the $88,000 resistance level, potentially aiming to re-test $90,000. However, Bitcoin disappointed traders in 2025 by consolidating under the $100,000 milestone after hitting it. The largest cryptocurrency has found favor as a strategic reserve asset for giants like Tesla and Block, among others. The catch? Short-term market fluctuations could impact prices, but institutional adoption remains a key driver for future growth. Will institutional investors continue to pile into Bitcoin?
Saylor’s Strategy Acquires Additional $555M in Bitcoin
MicroStrategy, now rebranded as Strategy, has made another significant Bitcoin purchase, acquiring 6,556 BTC for $555.8 million. The acquisition brings the company’s total Bitcoin holdings to 538,200 BTC, valued at over $36 billion. The company has spent an average of $67,766 per coin since its first Bitcoin purchase. This is the second consecutive week Strategy has bought Bitcoin, following a purchase of nearly 3,460 BTC two weeks ago. The company has posted a 12% return on its Bitcoin investment since the beginning of the year and plans to raise $20 billion. With this defiant stance on Bitcoin, Strategy remains the largest public company to hold the cryptocurrency, far ahead of competitors like MARA Holdings. The catch? The average price per coin in this latest acquisition was $84,785, higher than the company’s overall average. Ironically, despite the volatility in the crypto market, Strategy’s investment in Bitcoin has continued to grow. Will Strategy’s bold bet on Bitcoin continue to pay off? Only time will tell.
Analysts Divided on Bitcoin’s $90,000 Resistance
Investors are closely monitoring Bitcoin’s $83,000 support and $90,000 resistance levels. On Easter Sunday 2025, Bitcoin hit $84,600, its highest level on this holiday in 17 years. Despite Bitcoin dominance hitting a 4-year high, experts remain split on whether an altcoin season is coming. CryptoQuant’s Head of Research, Julio Moreno, predicts Bitcoin’s price resistance could be between $91,000 and $92,000. Will Bitcoin break through this resistance or face a correction?
Bitcoin ETFs See Biggest Net Inflows in 3 Months
Bitcoin ETFs have witnessed the largest net inflows in three months, totaling $381.40 million on Monday. This significant spike in capital inflow signals a renewed wave of institutional confidence in Bitcoin, following a period of subdued activity in the ETF market. The influx of capital reflects a resurgence in bullish bias among institutional investors toward BTC, despite broader sentiment remaining cautious. Yesterday, Ark Invest and 21Shares’ ETF ARKB recorded the largest daily net inflow, totaling $116.13 million, bringing its total cumulative net inflows to $2.60 billion. Fidelity’s ETF FBTC also saw notable inflows. This development raises questions about whether this renewed institutional interest will sustain and propel Bitcoin further.
Crypto Firms Circle and BitGo Pursue US Bank Licenses
Crypto firms Circle and BitGo are reportedly planning to apply for US bank licenses, amid increasing integration of crypto into the conventional banking system. This shift comes after the regulatory crackdown following the FTX collapse, which caused many traditional financial institutions to withdraw support. However, with former President Trump vowing to make America a ’Bitcoin superpower,’ more integration between crypto and traditional banking may be on the horizon. Notably, Coinbase Global and Paxos are also considering similar moves. The push for mainstream crypto finance is gaining momentum, with these firms aiming to bridge the gap between the digital asset market and traditional banking. Will this lead to a new era of financial integration, or will regulatory hurdles continue to pose challenges?
