Cardano

Rally

Bitcoin

Yield

Chainlink

<p>The selling pressure in Bitcoin continues to send jitters across the broader cryptocurrency market. In the last 24 hours, the BTC price has tanked another 3% going all the way lower to $63,500. A large part of the recent Bitcoin price movement comes on the backdrop of the current macro setup. Interestingly, Bitcoin has been showing a strange correlation with the Dollar Index and Treasury Yield recently.</p>
<h3 id="bitcoin-vs-usd-index">Bitcoin vs USD Index</h3>
<p>It’s often said that the <a href="https://coingape.com/top-3-reasons-why-bitcoin-price-crashing-towards-60k/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin price movement</a> is inversely correlated to the Dollar Index (DXY), however, this relationship is more nuanced in the way we observe it. While analyzing the long-term data, both – the Dollar Index and Bitcoin price – have appreciated over the past decade, hinting at the broader trend of increase in both assets.</p>
<p>However, technically, Bitcoin always tends to decline during the upward phase in the Dollar Index and rises significantly with the downtrend and the sideways movement in DXY. The more interesting thing is that Bitcoin has been showing an inverse correlation with the US stock market which is a bit strange.</p>
<p>Usually, Bitcoin and stock markets move in tandem since both – Bitcoin and equity – fall under the risk assets category.</p>
<p>As per data from IntoTheBlock, despite the stock market reaching new highs, both – Bitcoin and Ether – have declined more than 10% from their yearly peaks. This sell-off has spread across the crypto market with altcoins like <a href="https://coingape.com/trending/will-solana-price-slip-below-130-as-bulls-hang-on/" target="_blank" rel="noopener noreferrer nofollow">Solana (SOL)</a>, Cardano (ADA), and Chainlink (LINK), experiencing even steeper drops and falling over 25% from their recent highs.</p>
<blockquote class="twitter-tweet">
 <p dir="ltr" lang="en">Despite the stock market reaching new highs, Bitcoin and Ether have declined over 10% from their yearly peaks.</p>
 <p>Other major cryptocurrencies like <a rel="noopener noreferrer nofollow" href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SOL</a>, <a rel="noopener noreferrer nofollow" href="https://twitter.com/search?q=%24ADA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ADA</a>, and <a rel="noopener noreferrer nofollow" href="https://twitter.com/search?q=%24LINK&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$LINK</a> have seen even steeper drops, falling more than 25% from their recent highs. <a rel="noopener noreferrer nofollow" href="https://t.co/NET1hMjr86">pic.twitter.com/NET1hMjr86</a></p>
 <p>— IntoTheBlock (@intotheblock) <a rel="noopener noreferrer nofollow" href="https://twitter.com/intotheblock/status/1804141421084938429?ref_src=twsrc%5Etfw">June 21, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>Also Read: <a href="https://coingape.com/heres-when-bitcoin-btc-price-recovery-will-start-this-year/" target="_blank" rel="noopener noreferrer nofollow">Here’s When Bitcoin (BTC) Price Recovery Will Start This Year</a></p>
<h3 id="global-liquidity-setting-stage-for-btc-price-rally">Global Liquidity Setting Stage for BTC Price Rally</h3>
<p>After a period of monetary tightening, recent data shows that the Global liquidity is rising once again setting the stage for the <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC price</a> rally ahead. The Global Liquidity Index has consistently reflected Bitcoin’s highs and lows, indicating a significant rally ahead in 2025.</p>
<figure id="attachment_203643" aria-describedby="caption-attachment-203643" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-203643" src="https://coingape.com/wp-content/uploads/2024/06/Global-Liquidity-Index.jpeg" alt="" width="743" height="550" srcset="https://coingape.com/wp-content/uploads/2024/06/Global-Liquidity-Index.jpeg 743w, https://coingape.com/wp-content/uploads/2024/06/Global-Liquidity-Index-300x222.jpeg 300w, https://coingape.com/wp-content/uploads/2024/06/Global-Liquidity-Index-80x60.jpeg 80w, https://coingape.com/wp-content/uploads/2024/06/Global-Liquidity-Index-150x111.jpeg 150w" sizes="(max-width: 743px) 100vw, 743px">
 <figcaption id="caption-attachment-203643" class="wp-caption-text">
  Courtesy: Financial Times
 </figcaption>
</figure>
<p>As we can see from the above chart, Global liquidity has just started expanding and BTC and equities are still trading at pretty decent higher levels. It’s just a matter of time that we see big green candles in Bitcoin.</p>
<p>The post <a href="https://coingape.com/bitcoin-shows-strange-correlation-with-usd-index-and-treasury-yield-whats-ahead/" rel="noopener noreferrer nofollow">Bitcoin Shows Strange Correlation With USD Index and Treasury Yield, What’s Ahead?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.</p>

Bitcoin Shows Strange Correlation With USD Index and Treasury Yield, What’s Ahead?

Table of Contents

Coingape News Media

Other articles published on Jun 21, 2024

Preparing for 2025: XRP Price Potential for Massive Gains Ahead

Sweeping Raid: UK Authorities Nab Suspects In £1 Billion Crypto Scandal

BlockDAG to Reach $10 by 2025: Poised to Be the Next Major Crypto Success Story After New Jersey ...

Market Watch: BlockDAG Hits $52.5M in Presale, BONK & Lido DAO See Price Surges

Crypto: LayerZero’s ZRO Token Launch Causes Turmoil Among Polymarket Bettors

Justin Sun Sends USDT to Binance

Join our free newsletter for daily crypto updates!