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bitcoin

Bitcoin Bulls Rejoice? Analyst Sees Weakening US Dollar As Major Catalyst

Ash Tiwari
by Ash Tiwari
7 months ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

As Bitcoin (BTC) continues to trade within a tight range of $96,000 to $102,000, analysts are eyeing a potential bullish catalyst in the weakening US dollar (USD). A further decline in the USD could trigger renewed bullish momentum for risk-on assets, including BTC.

Weakening USD Good For Bitcoin Price, Analyst Says

BTC has had quite a tumultuous past few days, plunging as low as $91,000 amid rising geopolitical tensions surrounding US President Donald Trump’s proposed trade tariffs on Canada, China, and Mexico.

Related Reading: Bitcoin May Return To $76,000 To Resume Bull Run – Here’s Why

However, a temporary halt on trade tariffs targeting Mexico and Canada provided some relief for BTC, allowing the flagship cryptocurrency to rebound to $102,000 before consolidating within the $97,000 to $99,000 range at the time of writing.

Despite this price consolidation, analysts believe there is room for further growth in risk-on assets. Bitcoin investor Lark Davis recently pointed out in an X post that the USD may be on the brink of a significant correction, a development that could be bullish for Bitcoin and other cryptocurrencies.

According to Davis, the US Dollar Index (DXY) is on the verge of breaking below the 50-day Exponential Moving Average (EMA), a level that has historically acted as strong support. Davis emphasized the impact of a weaker dollar on risk assets, stating:

Dollar weakening is mega bullish for risk assets. While we just saw the biggest liquidation event in the history of crypto, Bitcoin has remained strong. If DXY continues to fall and with all bullish catalysts like the US SBR & nation-state Bitcoin FOMO, this could mark the next leg of the crypto bull market.

davis
Source: Lark Davis on X

Fellow trader Bluntz echoed this sentiment, suggesting that the DXY has likely “topped for the next 1-2 years,” reinforcing the idea that Bitcoin could benefit from the dollar’s downward trajectory.

Meanwhile, data from market intelligence platform Santiment suggests that Bitcoin whales – holders with large BTC balances – are actively accumulating despite the recent market volatility. This contrasts with smaller traders, particularly those who entered the market in the past six months, who have been selling off their holdings.

Historically, such accumulation by whales has preceded significant price rallies. However, Santiment noted that it could take weeks or even months before the effects of this trend become apparent in Bitcoin’s price action.

Down And Then Up For BTC?

Despite the bullish outlook from analysts, recent on-chain data indicates that Bitcoin network activity is at its lowest level in nearly a year, signaling potential waning interest amid broader economic uncertainties.

Related Reading: Will The Bitcoin 4-Year Cycle ‘Break’ Under Trump’s Crypto Executive Order? Bitwise CIO Explains

Similarly, recent analysis by crypto analyst cryptododo7 suggests that BTC may need to fall as low as $76,000 before its next major leg up. At press time, BTC trades at $97,336, down 0.9% in the past 24 hours.

bitcoin
BTC trades at $97,336 on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Charts from X and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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