The correlation between the U.S. Dollar Index (DXY) and cryptocurrency prices is often inverse but complex. When the DXY rises, reflecting a stronger dollar, cryptocurrencies like Bitcoin tend to face downward pressure as investors favor traditional safe-haven assets. A stronger dollar increases the cost of crypto for non-U.S. buyers, reducing demand. Conversely, a weaker DXY can boost crypto prices, as investors seek alternatives amid dollar depreciation. Historical data shows this trend—e.g., Bitcoin often rallies when the DXY weakens, like during 2020-2021. However, the relationship isn’t absolute. Factors like market sentiment, regulatory news, and macroeconomic events (e.g., interest rate hikes) can disrupt this correlation. In 2025, with shifting global economics, the DXY-crypto link remains a key focus for traders, though its strength varies over time. (130 words)