What is the Bitcoin vs Dollar Index (DXY) correlation?
It measures how closely Bitcoin and the U.S. Dollar Index move together over a rolling 30-day window, using the Pearson correlation coefficient (−1 to +1). Bitcoin has historically shown a weak-to-moderate inverse correlation with the dollar — rising as DXY falls — consistent with a dollar-debasement / global-liquidity narrative, though this relationship is not constant.
What is DXY and where does this data come from?
DXY is the U.S. Dollar Index, tracking the dollar against a basket of major currencies (euro, yen, pound, and others). This tracker uses the ICE Dollar Index futures continuous contract via stooq.com, a free public daily-close data source, with no API key required.
Does a falling dollar always mean Bitcoin rises?
No. The inverse relationship is a historical tendency during periods when macro liquidity and dollar debasement are the dominant narrative for crypto — it is not a mechanical rule. During risk-on or crypto-native-driven rallies, Bitcoin can decouple entirely from DXY in either direction. This tool tracks the realized relationship, not a forecast, and is not investment advice.
Why track Bitcoin against the dollar instead of just BTC price?
BTC/USD already prices in dollar strength implicitly. Tracking the rolling correlation separately shows whether a BTC move is being driven by dollar weakness (a macro-liquidity story) or by crypto-specific flows — a distinction that matters for reading whether a rally or drawdown is a market-wide or Bitcoin-specific event.