Founders of analytics firm Glassnode, Bitcoin 
$89,143He predicts that it may reach new all-time highs in a short time. In their statement on the social media platform X, Jan Happel and Yann Allemann stated that Bitcoin may increase if the US Dollar Index (DXY) starts to decline.
Dollar Index and Bitcoin Relationship
DXY is an indicator that measures the value of the US dollar against six major currencies. Traders keep a close eye on the DXY because a weak DXY indicates investors are moving into risk assets like stocks and crypto rather than the dollar.
Happel and Allemann wrote:
“Bitcoin and DXY: a tight dance. Bitcoin followed DXY closely, especially when the dollar reached new annual highs after the US elections. However, when DXY weakens and divergence begins amid loosening policies, it indicates that Bitcoin will easily break new all-time records.”
Ethereum’s Power in the Market
Despite Bitcoin’s decline, analysts say Ethereum 
$3,096He states that it maintains its market power. Currently, Ethereum manages to increase its market capitalization despite losing value against Bitcoin.
At press time, Bitcoin is trading at $90,200, down nearly 5% from its all-time high of around $93,500.
Ethereum, on the other hand, is trading at 0.03398 BTC ($3,035), losing 4.39% in value against BTC. Bitcoin’s market dominance (BTC.D) stands at 61% relative to the total market capitalization of all crypto assets.
Analysts state that the re-strengthening of Bitcoin’s market dominance may affect the demand for Ethereum. They state that the decline in ETH/BTC parity does not indicate that Ethereum is losing value, but that Bitcoin’s strength exceeds other market dynamics.
These developments in the Bitcoin and Ethereum market create various opportunities and risks for investors. While DXY’s movements could affect Bitcoin’s price, Ethereum’s maintenance of market strength offers clues about the overall health of the crypto market. It is important for investors to carefully follow market trends and make informed decisions.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
