Bitcoin's Inverse Correlation to the US Dollar Hits 17-Month Highs – What's Next for BTC?

Market experts predict that the dollar rally will stagnate or correct by the end of 2022, in favor of Bitcoin. Market analysis

Bitcoin (BTC) has been moving in the opposite direction to the US dollar since the start of 2022 – and now that inverse relationship is more extreme than ever.

Bitcoin and the dollar are going in opposite directions

Notably, the weekly correlation coefficient between BTC and USD fell to 0.77 below zero in the week ending July 3, its lowest in seventeen months.

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Meanwhile, Bitcoin's correlation with the tech-heavy Nasdaq Composite hit 0.78 above zero during the same weekly session, according to data from TradingView.

BTC/USD correlation coefficient and US dollar. Source: TradingView

This is mainly due to the performance of these markets since the start of the year amid fears of recession, led by benchmark rate hikes from the Federal Reserve to curb rising inflation . Bitcoin, for example, has lost over 60% in 2022, while Nasdaq returns over the same period hover around minus 29.72%.

On the other hand, the USD has excelled, with its US Dollar Index (DXY) - a metric t...