BTC bulls may benefit from a weakening U.S. dollar index

Metals Hit Records as Dollar Weakens, While Crypto Struggles

Metals and other hard assets are hitting new highs as the U.S. dollar remains under pressure, yet cryptocurrencies have failed to follow suit.

The U.S. dollar index (DXY) fell again Tuesday, hovering just above its 2025 low. After surging in the weeks following Donald Trump’s November 2024 election, the greenback dropped sharply in the first half of 2025 and has traded in a volatile, near multi-year low range in recent months. Initially, this decline boosted stocks, gold, and Bitcoin (BTC $87,288.23), driving them to record levels.

Since October, however, the trend has diverged. Stocks and hard assets continue to climb—gold, silver, and copper all reached new highs Tuesday—while Bitcoin and broader crypto markets have faced significant declines.

Dollar Outlook

The DXY is approaching a key long-term support level dating back to the 2008 global financial crisis, tested several times this year. With foreign central banks tightening policy and the U.S. Fed under pressure to cut rates, the dollar could slip below this support.

A break could finally provide Bitcoin with the catalyst needed to reverse its ongoing downtrend.