The Bloomberg Dollar Spot Index fell 1.2% over the past five trading days, reaching near the 1,208 level. This index tracks the dollar against 10 currencies representing approximately 81% of US trade and 93.7% of daily foreign exchange volume, making it a more nuanced gauge than the DXY. Econometric models have established a statistically significant negative relationship between dollar index strength and Bitcoin prices. Historically, major declines in the dollar index of 5% or more have preceded Bitcoin rallies averaging over 40% within a six-month window. While crypto analysts increasingly monitor BBDXY shifts alongside Federal Reserve policy signals, this inverse correlation can break down during broad macroeconomic downturns or risk-off episodes.
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