The US dollar index just fell to 99.3, and is actually the lowest in three years, and has historically tended to show some major market shifts. Currently, the drop is below the critical 100 threshold, along with Bitcoin, which regains its $80,000 level. This could be an early sign that a wider crypto market rally will form as the US dollar index weakens.
DXY Crush and Bitcoin Surge: Is Crypto Market Rallying ongoing?
The historical pattern shows a rather strong inverse relationship between the US dollar index and cryptocurrency performance, with previous DXY dropping to below 100, preceded by the significant Bitcoin rallies in the past.
Occasion of dollar index drop signaling
The US Dollar index fell by about 1.5% in just 24 hours to 99.3. This is the lowest point since April 2022, part of a continuing downward trend that has seen an index decline of around 8.3% since January 2025.
Alex Adler of Cryptoquant said:
“The US dollar index has fallen to its lowest level in nearly three years amid capital outflows from US assets. Particularly for the US, trade tensions and growing concerns over a wider economic fallout have weighed heavily on market sentiment.”
Previous cases of US Dollar Index breaking below 100 in April 2017 and May 2020 were followed by major Bitcoin Bull runs that lasted for several months.
Market response to DXY index crashes
Bitcoin has assessed around 0.8% in the last 24 hours after the DXY index crash, indicating that early signs of Crypto Market Rally are what investors usually predict when the dollar’s strength begins to fade.
JPMorgan Chase & Co. Analysis from suggests that investors are weakening against the dollar, particularly against currencies such as the yen and euro.
Market response to the decline in the US dollar index is slightly slower than historical patterns suggest, with prominent delays extending by more than three months at the time of writing.
Possibility of Bitcoin price surges
The US dollar index sits at 99.3 and shows even more bearish signals on the chart, so the historical correlation undoubtedly suggests a potentially significant bitcoin price surge. Gold’s rise to $3,220 simultaneously also shows investors are currently actively seeking hedges against the dollar’s weakness across multiple asset classes.
The DXY index crash creates conditions that have previously caused considerable crypto market gathering periods in the past.
The US dollar index, which hits these multi-year lows at 99.3, represents a very important market signal that historically tends to benefit Bitcoin and the broader cryptocurrency market. While the historical patterns suggest future bullish conditions for digital assets, current trade tensions between major economies introduce several variables that did not exist in previous cycles.
