How do changes in the US dollar index affect the BTC price?

How do changes in the US dollar index affect the BTC price?

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The US dollar index (DXY) measures the strength of the dollar against a basket of foreign currencies and has an inverse relationship with the BTC price in many cases. When the dollar strengthens, Bitcoin often faces downward price pressure as it becomes more expensive for holders of other currencies.

Conversely, when the dollar weakens, investors may turn to Bitcoin as an alternative store of value, pushing its price up. This relationship is influenced by various macroeconomic factors and investor behavior. Watching the US dollar index alongside the live BTC price can help traders anticipate potential market moves.

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