Analysis: The US dollar index approaches the breakthrough range and the upper edge of BTC is under pressure or continues to be negatively correlated with DXY

According to CoinDesk, Bitcoin, which is regarded as a "rival" to the US Dollar Index (DXY), is facing continued pressure, with the market concerned that the US Dollar Index is about to break through the upper edge of the 13-month volatile range. Data showed that Bitcoin weakened for the third consecutive trading day, with prices hovering around US$63,900. The overall crypto market is also generally under pressure. At the same time, DXY rose 0.26% to 100.66, continuing its 0.8% gain from the previous trading day, approaching the critical range breakthrough. The analysis pointed out that if this structural breakthrough is confirmed, it will usually trigger a trend to follow funds to further push up the US dollar. Historical data shows that Bitcoin has a clear negative correlation with the US dollar index, and a stronger US dollar usually suppresses risky assets denominated in US dollars. The market believes that the Fed's hawkish stance strengthens the logic of support for the dollar and may further push funds towards safe-haven assets and dollar assets.