US Dollar Index (DXY) falls close to level that was followed by 500%+ Bitcoin price rallies
Bitcoin rallied 500% to 1,367% when the US Dollar Index dropped to 100. Will history repeat itself?
The Dollar Index (DXY) dipping below 100 has historically aligned with Bitcoin (BTC) bull runs, delivering gains of over 500% during the last two instances. Now, as trade tensions escalate and US Treasurys face sell-offs, some analysts believe China may be actively working to weaken the US dollar. This added pressure on the dollar heightens the likelihood that it could once again serve as a catalyst for another major Bitcoin rally.
According to an April 9 Reuters report, China’s central bank has instructed state-owned lenders to “reduce dollar purchases” as the yuan faces significant downward pressure. Large banks were reportedly “told to step up checks when executing dollar purchase orders for their clients,” signaling an effort to “curb speculative trades.”
Some analysts have speculated whether China might be attempting to weaken the dollar in response to recent US import tariff increases. However, Jim Bianco, president of Bianco Research, holds a different view.
