Macro Economic Indicators and Bitcoin: The fall of DXY brings opportunities for rise. The depeg phenomenon of Bitcoin and bond yields draws attention.

On June 15, data platform analyst Darkfost released a market analysis stating that the macroeconomy has become the dominant narrative in today’s Crypto Assets market. As a result, key indicators such as the Dollar Index (DXY) and U.S. Treasury yields are now closely monitored by investors, reflecting the overall state of institutional sentiment and global Liquidity. When the DXY and bond yields rise simultaneously, capital tends to withdraw from risk assets. In this environment, Bitcoin typically experiences a pullback. Historically, Bear Markets in Crypto Assets often occur alongside a strong upward trend in yields and the DXY.

Conversely, when the DXY and yields lose momentum, investors’ risk appetite shifts towards risk assets. These periods are typically associated with monetary easing or market expectations of interest rate cuts by the Federal Reserve, thereby boosting bullish sentiment in the crypto market. A notable aspect of the current cycle is the unusual decoupling between Bitcoin and bond yields. Despite yields reaching one of the highest levels in Bitcoin’s history, Bitcoin continues to maintain an upward trend, particularly accelerating rises when the DXY declines. This anomaly suggests a structural change in Bitcoin’s role within the macroeconomic landscape, with Bitcoin increasingly being viewed as a store of value. This new narrative may be redefining how Bitcoin responds to traditional macroeconomic forces.