Bitcoin’s been stuck between $96,000 and $102,000 lately, but some analysts think a weakening US dollar could be the key to a price surge.
A Weaker Dollar: Good News for Bitcoin?
A drop in the value of the US dollar often boosts assets considered “risky,” like Bitcoin. Recently, Bitcoin saw some wild swings, dipping as low as $91,000 due to trade tensions. However, things calmed down a bit after some trade tariff talk eased, and Bitcoin bounced back to around $102,000 before settling around $97,000-$99,000.
Analysts See Bullish Signals
Bitcoin investor Lark Davis believes the US dollar is poised for a significant drop. He points to the US Dollar Index (DXY) nearing a key support level – its 50-day Exponential Moving Average (EMA). Breaking below this could be huge for Bitcoin and other cryptos, Davis says. He highlights that even after a major crypto market correction, Bitcoin held its ground. Combined with other positive factors, a falling DXY could trigger the next Bitcoin bull run.
Another trader, Bluntz, agrees, predicting the DXY has likely peaked for the next couple of years.
Meanwhile, data shows that large Bitcoin holders (“whales”) are actively buying more Bitcoin, even with the recent volatility. This contrasts with smaller investors who’ve been selling. Historically, whale accumulation precedes big price increases, though it could take some time to see the effects.
A Dip Before the Climb?
Despite the positive outlook, Bitcoin network activity is at a near-year low, suggesting some waning interest. Some analysts, like cryptododo7, even predict Bitcoin might need to drop to $76,000 before the next big price jump. At the time of writing, Bitcoin is trading around $97,336.
