US Dollar Index (DXY) Slips Below Key Level That Preceded Bitcoin Rallies in 2017 and 2020

The US Dollar Index (DXY) fell below 96 for the first time since early 2022, losing a 15-year support line that anchored dollar strength since 2011. This key breakdown comes amid President Donald Trump’s latest remarks and a combination of macroeconomic factors. Notably, the DXY’s latest drop has fueled optimism for a Bitcoin (BTC) rally. US Dollar Index (DXY) Falls To 4 Year Low Recent macroeconomic developments have put sustained pressure on the US Dollar Index. Speculation over possible Japanese yen intervention has boosted the JPY, while pulling the greenback lower. At the same time, concerns over broader market stability are resurfacing. According to a report from Euractiv, IMF Managing Director Kristalina Georgieva said at an event hosted by the Brussels-based think tank Bruegel that the Fund is enhancing its capacity to model “unthinkable events” and prepare policy responses. When asked whether this includes a potential run on dollar-denominated assets, she said the IMF is examining “all kinds of scenarios” as part of its ongoing analysis. Lastly, President Trump’s recent remarks further weighed on the greenback. Speaking to reporters in Iowa, he played down the US dollar’s recent decline, saying the currency was “doing great.” “No, I think it’s great…I think the value of the dollar, look at the business we’re doing. The dollar’s doing great,” he said. The comments were followed by the DXY recording its largest one-day fall since the tariff-driven volatility seen in April. Market data showed the index fell to a low of 95.5, its weakest level since February 2022, before settling at a press time value of 96. It also dropped below a key long-term support level that had held since 2011. DXY Monthly Chart Illustrating 15-year Uptrend Break. Source: X/BullTheory The next three days will be crucial. If the monthly candle closes below the 15-year trendline, analysts expect more dollar weakness. BREAKING#DXY prints a 4-year low!First it broke down from a 3-year exp...