Bitcoin Roars Back: 12% Surge as DXY Index Tumbles 12%—A Macro Flip Flop

Digital gold outshines the dollar—again. Bitcoin’s latest rally coincides perfectly with the DXY’s nosedive, proving crypto’s still the hedge against fiat chaos.

The Inverse Correlation Play

When the dollar weakens, Bitcoin flexes. The 12% swing in both directions isn’t just coincidence—it’s a liquidity migration. Traders ditch USD exposure, and where do they park? The same decentralized ledger Wall Street swore was ‘just a scam’ three years ago.

Why This Time Isn’t Different

Central banks keep printing, Bitcoin keeps absorbing. The math stays simple: limited supply beats inflationary policy every time. Even the suits are quietly stacking SATs now—though they’ll still lecture you about ‘risk management’ over martinis.

Bullish? Obviously. The only thing dropping faster than the DXY is Jamie Dimon’s credibility. Tick tock, next block.

The DXY, in blue, has dropped by nearly that exact percentage. A purple line in the chart showed BTC/USD after adjusting for DXY’s volatility starting from last year, further revealing how disconnected bitcoin has become from dollar weakness.

Looking at performance across different timeframes, BTC/USD has beaten crude oil, gold, the S&P 500, and the Nasdaq 100 across one-year, three-year, and five-year spans. Nvidia is the only major asset to outperform Bitcoin over three and five years, but it’s not displayed in the latest comparative chart.

Bitcoin touches new highs across different metrics

Rather than compare Bitcoin in dollar terms alone, analysts are now watching its price relative to major financial indices and commodities. The BTC/S&P 500, BTC/Nasdaq 100, and BTC/crude oil ratios all peaked in late May, with current levels still hovering just under those highs. In raw dollar value, Bitcoin remains just 2% below its all-time high.

The gold/Bitcoin ratio hasn’t followed suit. It’s now 20% below its record from just before Christmas 2024, making it the only major cross to fall that far off its peak.

Still, one milestone was hit early this morning on Coinbase, when Bitcoin reached $110,500. That price wasn’t just a dollar benchmark — it represented a new all-time high when adjusted for the DXY, coming in at 1139.58. That number is 2% above the previous DXY-adjusted high set in late May. While DXY’s structure has been questioned, the new record remains factual.

The current price levels have major implications for short sellers. If BTC crosses $115,000, more than $6 billion worth of short positions stand to be liquidated. And right now, with prices just shy of record highs, 99% of Bitcoin holders are sitting in profit, based on public blockchain data tracked since January.

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