The Fourth Largest Weekly Drop in Dollar Index in Over a Decade Signals Bitcoin Bottom

### **U.S. Dollar Index Sees Rare Drop, Historically Signaling Bitcoin Bottoms**

The U.S. Dollar Index (DXY) has recorded one of its steepest weekly declines since 2013, marking just the fourth instance of a **-4 standard deviation drop** in more than a decade. This rare event has historically aligned with bitcoin cycle lows, raising speculation about a potential market shift.

#### **Historical Patterns Suggest BTC Rebounds**

Data from **Global Macro Investor** and **Bloomberg** highlights that similar sharp DXY declines in **2015, 2020, and 2022** coincided with major bitcoin bottoms.

- **November 2022:** Bitcoin hit **$15,500** amid the FTX collapse.

- **March 2020:** BTC briefly dropped below **$5,000** during the COVID-19 market panic.

- **2015 Bear Market:** Bitcoin traded around **$250** before a recovery.

Following each of these events, Bitcoin experienced significant price surges.

#### **Current Market Outlook**

While the DXY’s rapid decline could be bullish for risk assets, it remains above 100, currently at **103.8**, signaling continued strength. CoinDesk research also notes that the **DXY is weakening at a faster pace than during Trump’s first term**, a period that coincided with the 2017 bitcoin bull run.

As traders assess macroeconomic conditions, attention now turns to how Bitcoin will respond to this rare dollar movement.