Bitcoin bulls eye possible tailwind as U.S. dollar index continues to leg lower

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Bitcoin bulls eye possible tailwind as U.S. dollar index continues to leg lower Metals and other hard assets continue their surge to new records as the greenback stumbles, but crypto has not responded. By James Van Straten , Stephen Alpher | Edited by Stephen Alpher Dec 23, 2025, 2:47 p.m. DXY (TradingView) What to know : The U.S. dollar is trading near a three-month low and just above a major support line stretching back to the 2008 financial crisis. Precious metals and other hard assets have responded as expected to the greenback's weakness — rallying strongly — but bitcoin and crypto have remained under pressure. The U.S. dollar index (DXY) index is lower again on Tuesday, trading not far above its 2025 low. After a strong gain in the weeks following the November 2024 election of Donald Trump, the greenback declined sharply throughout the first half of 2025 and has remained in a choppy pattern near multi-year low levels for the past few months. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . The dollar's large 2025 drop initially was mostly accompanied by expected broader market reaction, with things like stocks, gold and bitcoin BTC $ 87,359.63 all rising sharply to new records. The story since October, though, is somewhat different — stocks and other hard assets have continued to surge — in fact, gold, silver and copper all rose sharply again on Tuesday to reach new record highs — but bitcoin and broader crypto markets have endured brutal bear moves. What might be next for the dollar The DXY index is now trading just above a major long-term support level that extends back to the 2008 global financial crisis. This level has been tested and held multiple times, most recently in July and September of this year. DXY (TradingView) As several foreign central banks, including the Bank of Japan , move toward tighter monetary policy, the U.S. Federal Reserve is facing growing pressure, most notably from President Trump, to lower interest rates. This divergence raises the possibility that the dollar could fall below that major support. While the weak dollar this year hasn't yet had any salutary effect on bitcoin, perhaps a break of that long-term support could be the news that finally spurs a reversal of crypto's downtrend. U.S. Dollar Gold Bitcoin News More For You State of the Blockchain 2025 By CoinDesk Research Dec 19, 2025 Commissioned by Input Output Group L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below. What to know : 2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns. This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026. View Full Report More For You Polkadot's DOT slips 4.5% as token underperforms wider crypto markets By Will Canny , CD Analytics | Edited by Stephen Alpher 46 minutes ago DOT is facing pressure as it tries to retake the $1.76 support/resistance level. What to know : Polkadot's DOT pulled back alongside a broader drop in crypto markets. DOT trading volumes dropped 9% below monthly averages, signaling weak conviction. Read full story Latest Crypto News CoinDesk 20 Performance Update: Uniswap Drops 3.7% as All Index Constituents Decline 38 minutes ago Polkadot's DOT slips 4.5% as token underperforms wider crypto markets 46 minutes ago Crypto exchanges brace for pressure as banks like JPMorgan enter spot trading 48 minutes ago BNB slips toward $850 as market pullback weighs on token 49 minutes ago Amplify ETFs targeting stablecoin and tokenization sectors open for trade 1 hour ago Risk aversion boosts gold, hurts bitcoin: Crypto Daybook Americas 2 hours ago Top Stories Bitcoin's growing roadblock: The trendline from $126,000 limits gains 2 hours ago Crypto exchanges brace for pressure as banks like JPMorgan enter spot trading 48 minutes ago Bitcoin heads for its worst Q4 since 2018 as traders predict further declines 9 hours ago Risk aversion boosts gold, hurts bitcoin: Crypto Daybook Americas 2 hours ago Aave falls 18% over week as dispute pulls down token deeper than major crypto tokens 8 hours ago Bitcoin trails gold and copper, as 'fear and AI' trade lifts tangible assets 6 hours ago In this article BTC BTC $ 87,359.63 ◢ 3.05 %