Bitcoin Poised for Potential Surge as US Dollar Index Plummets, Analyst Suggests

This week, the U.S. Dollar Index (DXY) experienced a significant three-day drop of -5.4%, falling from 109.881 to 103.967. According to Jamie Coutts, Chief Crypto Analyst at Real Vision, this decline could signal a bullish trend for Bitcoin. Coutts highlighted historical backtests showing that similar DXY drops have often coincided with pivotal moments in Bitcoin's price cycles. Coutts' analysis of DXY declines exceeding -2.5% since 2013 revealed that Bitcoin's price increased in every instance over the subsequent 90 days, with an average return of +37%. A separate backtest focusing on DXY drops greater than -2.0% showed Bitcoin rising 17 out of 18 times, averaging a +31.6% return over 90 days. While acknowledging the limitations of historical data, Coutts suggests that the current DXY movement, combined with recent capitulation in the altcoin market, sets the stage for a potential new all-time high in Bitcoin by May.