Bitcoin’s Rally Isn’t About Dollar Weakness

Bitcoin Correlations Report, April 2025

Bitcoin is on a tear right now. In just a few days, it broke above its 200-day moving average and climbed all the way past $94,000. If it can hold that breakout, it would qualify as a bullish move.

Some have attributed this rally to US dollar weakness, as measured by the US Dollar Index (DXY).

But that’s unlikely to be the real driver.

In this Bitcoin Correlations Report, we dig into why that narrative doesn’t hold up and what actually explains Bitcoin’s outperformance.

Let’s dig in.

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Bitcoin’s Rally Isn’t About Dollar Weakness

The Takeaway

Bitcoin’s recent breakout isn’t about dollar weakness, it’s about liquidity.

Despite popular belief, Bitcoin shows no consistent inverse correlation to the DXY. Instead, it trades in line with risk assets like the NASDAQ.