Is Bullish for Bitcoin and Bearish for the Dollar? Will Inverse Correlation Work? Analysts Divided!

After the sharp decline last week Bitcoin (BTC) While slowly recovering, Din the olar Index (DXY) There was a retreat.

The recent pullback in DXY caused cryptocurrency investors to expect that the weakness in the dollar will continue and Bitcoin will rise again.

At this point, while analysts expect DXY to fall further, this decline BTC and expects it to bring an increase to cryptocurrencies.

Founder and managing partner of Alpine Fox LP, speaking to Coindesk Mike Alfredsaid the following about the DXY and Bitcoin connection:

“DXY saw resistance at 106 as expected and started to reverse. A return towards 102-103 levels will accelerate the Bitcoin rally.

The timing makes sense because Bitcoin is poised to rise to $90,000 in the short term.

“In the long term, I expect DXY to be at 92 levels by the end of 2025.”

Apart from Mike Alfred, Glassnode co-founders Jan Happel and Yan Allemann also evaluated DXY-Bitcoin and said that the dollar has reached its peak with the expanding triangle formation and may fall in the coming weeks, pushing BTC and the general crypto market even higher.

“Dollar (DXY) Can Stay Strong for Longer!”

Analysts While a decline in DXY awaits an increase in Bitcoinsome banks state that they do not think the dollar will weaken immediately.

At this point, Societe Generale’s team led by Kit Juckes stated that it does not seem possible for the FED to cut interest rates before 2025, so DXYHe said that it will not fall immediately and that they expect it to peak between 107 and 110 levels.

Scotiabank also expressed a similar view as the Societe Generale team in a recent note to its customers, saying: “We think the FED will keep rates high for longer, which means DXY will likely remain strong for a longer time.” said.

Finally, Barclays said that a potential trade war between the US and China could bode well for the dollar and cause DXY to rise.

*This is not investment advice.