Bitcoin has surpassed the top US dollar benchmark this year. The DXY index, which tracks greenbacks against other major currencies, fell 12% since mid-January.
That decline wiped out nearly five years of profits, but Bitcoin surpassed almost the same percentage with the exact same stretch.
The decline of DXY comes with many warnings. The index leaps violently towards Europe, with more than half of its weight tied to the Euro. In addition, around 20% is unevenly distributed between the British pound, the Swedish crona and the Swiss franc.
One currency from Asia, the Japanese Yen, holds about 14% of the index and places it in the basket. The Chinese yuan does not appear at all. Still, since January, the US dollar has slipped about 2.5% against the yuan.
Bitcoin performance shows clear divergence when placed on a slide in DXY. The orange line representing BTC/USD rose almost 12% in six months.
Source: BlockWorks
The blue DXY fell by almost exactly that percentage. The purple line on the chart shows BTC/USD after adjusting DXY volatility since last year, further revealing how Bitcoin has turned out from the weakness of the dollar.
Looking at the performance across different periods, BTC/USD defeated Crude, Gold, S&P 500 and Nasdaq 100 over a span of one, three, and five years. Nvidia is the only major asset that has outperformed Bitcoin for three and five years, but it is not shown in the latest comparison charts.
Bitcoin touches new highs across a variety of metrics
Rather than comparing Bitcoin alone with Bitcoin alone, analysts are now monitoring prices compared to major financial indices and products. The BTC/S&P 500, BTC/NASDAQ 100, and BTC/crude ratio all peaked in late May, with current levels still hovering under those highs. In terms of raw dollar value, Bitcoin is just below the record high of 2%.
The gold/bitcoin ratio is not compatible. Now it's 20% below the record just before Christmas in 2024, making it the only major cross far from its peak.
Still, one milestone hit Coinbase this morning when Bitcoin reached $110,500. That price wasn't just a dollar benchmark. It represents the new all-time great when adjusted for DXY that appears on 1139.58. That number surpassed the previous DXY adjusted high set in late May by 2%. The structure of DXY is questioned, but the new records remain true.
Current price levels have a major impact on short sales. If BTC exceeds $115,000, short positions of over $6 billion will be settled. And now, slightly shy of record highs, 99% of Bitcoin holders are making profits based on public blockchain data tracked since January.
