BTC vs. DXY
Bitcoin against the US Dollar Index — historically strongly negatively correlated.
Understanding this chart
The DXY measures the dollar's strength against a basket of major currencies (euro, yen, pound, and others). Bitcoin, priced in dollars and behaving like a liquidity-sensitive risk asset, has historically moved inversely to it: dollar strength coincides with BTC weakness and vice versa.
The big alignments are striking: the 2021 crypto top formed as DXY bottomed, the 2022 bear market tracked DXY's violent rally to 114, and BTC's recoveries have coincided with dollar retreats. The mechanism is macro: a rising dollar usually means tightening global liquidity — the tide that floats or sinks all risk assets.
BTC is on the log scale (right axis), DXY linear (left). The correlation is a regime, not a law — it weakens in quiet macro periods and tightens when the Fed dominates the narrative.