Data challenges the DXY correlation to Bitcoin rallies and corrections ‘thesis’

Presently, there seems to be a general assumption that when the U.S. dollar value increases against other global major currencies, as measured by the DXY index, the impact on (BTC) is negative.

Traders and influencers have been issuing alerts about this inverse correlation, and how the eventual reversal of the movement would likely push Bitcoin price higher.

Dollar Index DXY 20-day correlation versus Bitcoin. Source: TradingViewDollar Index DXY (orange, right) vs. Bitcoin (blue). Source: TradingViewDollar Index DXY (orange, right) vs. Bitcoin (blue), 2021. Source: TradingView

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