Bitcoin-Dollar Correlation: The crypto market continued its bullish momentum that began with the Fed’s 25 bp interest rate hike

Overall, sentiment in the crypto-currency market is bullish, with most coins posting significant gains. Altcoins such as Cardano and Solana are up an impressive 6%, while Polygon is up 12% in the past 24 hours.

Meanwhile, projections for the U.S. Dollar Index (DXY) aren’t exactly rosy, as analysts point to the next support price around 90, while it’s currently at 101.13, down 0.09% on the day. The dollar index generally follows an inverse correlation with the price of BTC. Compared to the DXY range around five days ago, it is down 0.70%.

Macroeconomic support for a rise in bitcoin?

A further decline in the DXY could potentially lead to a further surge in the price of bitcoin. The current range is not far from the lows recorded in May 2022. If the DXY falls below this level again, the next support is in the 92 range.

$DXY

The dollar is testing the May lows.

Look out below if it breaks. Next support way down. pic.twitter.com/O0eDA83fcT

– The Wolf Of All Streets (@scottmelker) February 1, 2023

Meanwhile, the price of bitcoin is showing encouraging signs in the continuation of its January rally. At the time of writing, the price of BTC stands at $23,847, up 3.21% over the past 24 hours. On Wednesday, the S&P 500 Index also rose in response to the Fed’s announcement. Over the course of the day, the SPY was up 1.05%.