The rise of Bitcoin reflects the weakness of the Dollar──Comparing with other assets reveals future barriers | CoinDesk JAPAN

• Bitcoin continues to discover prices at levels exceeding 117,000 Dollar. This is partly due to the weakness of the Dollar. When the Dollar weakens, risk assets such as stocks and cryptocurrencies are supported.
• Bitcoin has reached an all-time high in Dollar terms, but has not been able to reach an all-time high against gold, stock indices, or the British Pound, indicating that important resistance lines remain before the possibility of a true breakout can emerge.

This is because much of the recent rise reflects a weaker Dollar rather than broad materials in cryptocurrency. The Dollar index has declined from 110 at the beginning of the year to below 98. Levels below 100 typically suggest a weaker Dollar, which generally supports risk assets.

For Bitcoin to demonstrate true independence and strength, it needs to outperform other assets, but currently, that is not the case.

For example, 1 BTC is currently equivalent to just over 35 ounces of gold, but the all-time high was recorded at around 40 ounces in December 2024. Similarly, Bitcoin is currently trading at 87,000 pounds (approximately 17.4 million Yen), but the all-time high is 90,000 pounds. In the stock market, the ratio of Bitcoin to the S&P 500 and NASDAQ 100 also remains below past peaks.

Such levels represent a long-term resistance zone. If Bitcoin clearly breaks through these, true price discovery may begin. It is difficult to assess actual performance without considering Bitcoin in comparison to major assets other than the Dollar.

[BTC/GBP (TradingView)]｜Translated and edited by Lin Rinan | Image: BTC/XAU (TradingView) ｜原文：Bitcoin’s Rally Reflects Dollar Weakness, Other Assets Highlight the Barriers Ahead

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