Bitcoin’s Galactic Ascent: Will the Dollar’s Downfall Launch It to New Heights?

In a twist of cosmic irony that would make even the most seasoned intergalactic hitchhiker raise an eyebrow, Jamie Coutts, the Chief Crypto Analyst at Real Vision, has boldly suggested that a sharp drop in the US Dollar Index could be the very thing that catapults Bitcoin into the stratosphere of price rallies. 🚀

On the 7th of March, in a post that surely sent shockwaves through the digital ether, Coutts pointed out that historical evidence—yes, that pesky thing we call history—indicates that notable declines in the DXY often align with Bitcoin’s (BTC) grandiose uptrends. He conducted a backtest, which sounds suspiciously like a fancy term for “I played around with some numbers,” and discovered that when the DXY dropped more than 2%, Bitcoin had an average gain of 31.6% and a staggering 94% win rate over the next 90 days. Talk about a winning streak! 🎉

But wait, there’s more! When the DXY fell by more than 2.5%, Bitcoin didn’t just win; it won 100% of the time, averaging a delightful 37% return. Coutts, with the confidence of a cat that just knocked over a glass of water, believes Bitcoin will reach a new all-time high by May. Mark your calendars, folks! 📅

“When looking at this recent move in the DXY through a historical lens, it’s challenging to be anything but bullish. I ran a signal screen for 3-day negative moves of more than -2% & -2.5% and found they have all occurred at Bitcoin bear market troughs (inflection points) or…”
— Jamie Coutts CMT (@Jamie1Coutts) March 6, 2025

The DXY, often regarded as the inverse signal for risky assets like Bitcoin (because who doesn’t love a good inverse relationship?), measures the value of the US dollar against a basket of major currencies. When the dollar weakens, investors, like moths to a flame, flock to alternative stores of value—like Bitcoin. 🦋

Now, let’s not forget the recent market turbulence, which has been fueled by Trump’s tariffs on Canada and Mexico, along with his administration’s renewed push for a national crypto strategic reserve. Because why not throw a national reserve into the mix? It’s not like we have enough chaos already! Meanwhile, the upcoming Crypto Summit has sent speculations soaring higher than a Vogon poetry reading. 📈

As of now, Bitcoin is trading around $87,800, down 4% in the past 24 hours, which is about as comforting as a towel in a rainstorm. The trajectory of altcoins, however, remains as mixed as a smoothie made by a particularly indecisive chef. While some solid projects are showing signs of recovery, the market as a whole is still suffering from heavy sell-offs. 🍹

According to Coutts, the 365-day new lows in the Top 200 crypto index reached 47%, a signal of capitulation typically seen before bullish reversals. If historical trends hold, a declining dollar and growing institutional confidence may just be the cosmic forces driving Bitcoin and altcoins into a period of sustained gains. Or, you know, it could all just be a figment of our collective imagination. 🤔

Given the uncertainty surrounding the Federal Reserve’s next actions, macroeconomic issues may have an even greater impact on the direction of the market in the short term. So, buckle up, dear reader, for the ride of your life through the whimsical world of cryptocurrency!

2025-03-07 08:07

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