Falling US dollar index could cause Bitcoin price increase of up to 6 times

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The value of Bitcoin and other cryptocurrencies can be influenced by various factors, including the US dollar index (DXY). In the past three years there has been a reverse correlation between the value of Bitcoin and the DXY, which means that Bitcoin usually increases when the DXY falls and vice versa. The DXY has currently fallen by almost 3% in the past few weeks and is about to be at short. An analysis of the renowned Trader Gert van Langen indicates that the DXY will continue to fall and may even drop below 89.

This development could have a positive effect on the price of Bitcoin. The crypto analyst "Coosh" Alemzadeh has observed that Bitcoin has experienced remarkable price increases in the past when the DXY has fallen under 100. In 2017, Bitcoin rose 10 times and 7 times in 2020. Alemzadeh predicts that this trend could continue and Bitcoin may experience a price increase for 4 to 6 times if the DXY falls under 89 as expected.

These observations are also supported by the founders of Glassnode, Jan Happel and Yann Allemann. You have predicted an ABC structure that represents the headwind for Bitcoin and other risk systems. You expect the DXY to fall strongly to 91-93 by the end of the year, which would support the cryptoma market.

At the current time, the Bitcoin price remains in a sideways trend and is traded at $ 30,421. It remains to be seen whether the predicted developments will arrive and actually influence the Bitcoin price. Investors are intently observed how the DXY develops and whether the historical correlation between the DXY and the Bitcoin Prize continues.