Wales Vargo believes that the price of bitcoin flips up the rise soon

Wells Fargo suggests that Bitcoin may soon see a clearer sky, referring to the relationship between the leading digital assets and the strength of the dollar.

2025 was not the year Bitcoin And imagine the encryption supporters. instead of The continuous market euphoria Driven by a pro -profit management, prices fell from Jurf with uncertainty in the peak.

Amid these market conditions, Wales Vargo, one of the largest banks in the United States, suggested that Bitcoin’s bad wealth may be on the verge of change. However, there may still be caution.

Wales Vargo refers to DXY

Wells Fargo suggested that Bitcoin may soon see a clearer sky, pointing to the relationship between the leading digital assets and the strength of the dollar.

Specifically, an excerpt from a recent report from the bank subscriber Written by Vaneck Head of Digital Assets Research Matt Sign on Wednesday reveals that Bitcoin has a strong counter -relationship for 10 weeks with DXY. This index follows the performance of the dollar for six main currencies.

“BTC has constantly tracked the upside down DXY to a 10 -week delay, indicating that the current clouds are a reaction to the strong dollar in the fourth quarter, and that the weak environment that we have seen since DXY reached its climax on January 13 may be more constructive to move forward.”

Source: Wales Vargo pic.twitter.com/pequdpvqv

Matthew Sigge, CFA Restore (Matthew_sigel) March 19, 2025

By exploring this relationship, Wells Fargo argues that Bitcoin declined by 25 % of its highest levels this year can be linked by the dollar with the fourth quarter 2024, which witnessed the increase in the number of index by 10 % of 100.418 on September 30 to 110.176 on January 13.

But DXY was in a free fall since he hit this high. Specifically, more than 6 % decreased to a decrease of up to 103.197. As such, Wells Fargo suggests that things may soon start searching for digital assets.

Meanwhile, Wales Vargo is not alone in this view. On March 7, the head of research at the Global Julien Bittel investor has highlighted that similar DXY drops have preceded the huge Bitcoin moves to the upward trend within months.

The step in DXY this week was very huge.

This type of decline has occurred only three times in the past twelve years. And when we look at what it means to move forward in Bitcoin, it opens the eye …

Once again in August 2015, when we saw this standard -4 … pic.twitter.com/wuwwhvx5nk

Julien Bittel, CFA (Pitteljulien) March 7, 2025

However, the current market dynamics indicate that things may not be clear.

The conversion of the tide and the global islands and how it affects bitcoin

The simple cause of Bitcoin when the dollar strengthens is that the dollar has been working for a long time as a safe haven. In times of uncertainty, he sees increased demand as investors escape risk assets such as encryption for the safety of the secured US Treasury revenues.

In this measurement, the dollar tends to be weak during times of economic growth and expansion when investors are more willing to bear risk.

In recent cases, however, the dollar weakens amid uncertainty. Instead of strengthening the dollar as expected, President Donald Trump’s policies raised the tariff concerns about economic growth.

At the same time, Trump’s isolation of American allies through his position on many geopolitical issues has sparked real concerns about the continuation of the dollar’s position, such as the world’s reserve currency.

All of these raises the issue of whether the reverse relationship between Bitcoin and DXY will continue to bear.

One of the potential methods that can happen is that the Federal Reserve speed up the schedule to reduce the interest rate to avoid growth concerns, but inflation Still far away Its goal of 2 %, which makes it a difficult call.