Analysis: Dollar strength poses a limited threat to Bitcoin, with correlation data showing increased independence.

According to CoinDesk, the US Dollar Index (DXY) has gained approximately 2.6% since September 9 and touched a two-month high of 101.69 earlier this week. Although a strong dollar is typically viewed as a bearish factor for risk assets such as Bitcoin, on-chain and market data indicate a weak correlation between the two. Over the past 90 trading days, the daily return correlation coefficient between BTC and the DXY was -0.41, with an R² of only 0.17, meaning the DXY explains merely about 17% of the variance in BTC's daily returns; since January 2020, the average of this 90-day correlation has been lower at -0.14. Currently, the BTC price has pulled back from a peak of around $87,500 on September 21 to the $83,000–$84,000 range, with limited downside. Analysts note that Bitcoin also lacks significant correlation with US Treasury yields, further reinforcing its role as a portfolio diversification asset.