Bitcoin’s price may be moving towards the psychological $100,000 threshold again, as recent trends suggest a bullish rebound following significant drops in the Dollar Index. The journey since mid-April indicates potential growth, despite previous downward movements since February. A strong correlation between Bitcoin’s price and the DXY has played a critical role in its fluctuations since late January.
Bitcoin (BTC) is seeing some buzz lately, with many eyeing the potential for the price to hit that elusive $100,000 mark again. The air around the cryptocurrency is charged because just a few weeks ago, analysts were bracing for declines as April was expected to be a tough month for BTC. But, turns out things may not be as dire as predicted.
Looking back, before mid-April, Bitcoin had been stuck in a downward trajectory since February. After reaching highs around $100,000 in January, the trend dipped downwards, with only two peaks above that threshold since then. The attempts to get close to $100,000 during late February fell short, which left many wondering if this decline would continue. Observing price charts from 2025 reveals a clear downward trend beginning at the end of January, marked by some fluctuations, but this trend seemed to lose steam after April 8.
Initially, it did seem like the downward trend might resume post-April 8, but a significant event unfolded on April 21 when the Dollar Index (DXY) unexpectedly fell below 99 points. This dip propelled Bitcoin upwards, and the bounce back is evident in the recent price trends. From the chart, it’s apparent that this rebound lifted BTC well.
To put things in perspective, the last time Bitcoin prices topped $100,000 was on February 7, and it almost hit $99,500 on February 21 but didn’t quite manage to surpass $97,000 until yesterday. The current bullish trend appears strong, and since April 21, Bitcoin has climbed above $88,000 then reached beyond $90,000, and quickly sped past $94,000 too.
While many were expecting a pullback, starting April 25, Bitcoin continued to rise, crossing the $95,000 and later touching $96,000. This surge suggests a possible aim for $100,000, but it’s worth noting that there are no guarantees this momentum will sustain.
That $100,000 level is huge—it’s practically the talk of the town in cryptocurrency circles. Back in 2021, during an impressive bull run, Bitcoin blew past its previous record of about $20,000 and sprinted to over $60,000 in a matter of months. Excitement mounted as everyone set their sights on $100,000, which has now lingered as a significant psychological price benchmark for years.
In that much-lauded year, Bitcoin never quite hit the $100,000 goal, and beyond that, the bear market took it down, even dropping below $16,000. However, 2023 has seen a robust recovery, starting the year with an average around $29,000 and then closing 2024 at $66,000. Interestingly, Bitcoin finally crossed that $100,000 threshold for the first time on December 5, 2024, although it has danced around that level frequently without maintaining it for long stretches.
An interesting factor is the performance of the Dollar Index (DXY) against Bitcoin. When Bitcoin first jumped above $80,000 in November, the DXY stood near 105 points, even peaking over 110 points by mid-January. Since Bitcoin generally has an inverse relationship with the DXY, its rise stifled BTC’s progress beyond that $100,000 line.
However, starting around January 20—coinciding with Trump’s inauguration—the DXY began a steady drop, falling to below 108, then below 107 by the end of January. Although initially, Bitcoin remained stagnant, a sudden downturn began in March, where the DXY plunged dramatically, thus unfettering Bitcoin from its previous downward spiral.
