According to Andre Dragosch, BTC accelerates when U.S. governance quality deteriorates and the dollar weakens, implying a risk-hedge bid for crypto during macro stress (source: Andre Dragosch on X, Aug 17, 2025). Historically, BTC has shown extended periods of negative 90-day correlation with the U.S. Dollar Index, indicating that USD weakness often coincided with BTC strength for multi-week windows (source: Kaiko Research market updates 2023-2024). In Q4 2023, a drop in DXY from the mid-100s was accompanied by a sharp BTC rally, illustrating the inverse USD–BTC relationship in practice (source: ICE Data Indices for DXY and Coin Metrics price series, Q4 2023). BTC has also tended to move inversely with U.S. real yields, with declines in 10-year TIPS yields aligning with broader risk-on behavior in digital assets (source: Coin Metrics and Glassnode research briefs 2022-2024). Traders commonly monitor DXY, 10-year real yields, and Treasury volatility via the MOVE Index to time BTC breakouts around policy or liquidity shocks (source: Coinbase Institutional weekly markets commentary 2023-2024).

According to The Kobeissi Letter, the US Dollar Index ($DXY) has reached a new 52-week low, declining by nearly 10% since the onset of the trade war. This significant drop in dollar value has made USD-denominated gold more affordable for foreign investors, resulting in increased gold demand and price action. Traders should note that gold is serving as a leading indicator for tariff impacts, with its price movements closely tracking currency fluctuations and trade policy developments (source: @KobeissiLetter, May 5, 2025).