The U.S. Dollar Index has seen a significant decline due to increasing hopes of the Federal Reserve ending interest rate hikes. This has led to a weakening correlation between the USD and Bitcoin, meaning that movements in the U.S. dollar will have little impact on BTC.
The negative correlation between BTC and the USD has decreased from -61% to -10% on a year-to-date basis, allowing Bitcoin to be marketed as an independent asset class. However, caution should be exercised as the current U.S. regulatory environment may not sustain the gains made by BTC in 2021.
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