Bitcoin (BTC) capabilities serve as a hedge against the US dollar, with data showing that Crypto’s movement is consistent with currency.
Specifically, the correlation between Bitcoin and the US Dollar Index (DXY) has skyrocketed to 0.25, the highest among the major macro assets, showing an increase from 0.15 in May. Binance Research Share with Finbold
Historically, maiden digital currency has moved or not affected the dollar.
“This rare change suggests that BTC may now be responding to the same liquidity conditions that support the dollar, rather than acting as a hedge against it,” the report states.
Correlation between Bitcoin and macro assets
The report also reveals a 0.33 correlation between Bitcoin and the Treasury yield over the past 2010, indicating its potential as an inflation hedge in cryptocurrency.
Meanwhile, the BTC relationship with the S&P 500 fell to 0.21, indicating a move from previous stock-like trading patterns.
Additionally, the link to Bitcoin gold remains slightly negative at -0.11. While precious metals tend to respond to traditional risk sentiment and interest rates, Bitcoin is affected by liquidity and speculative flows.
“This behavior suggests that despite the overlap of narratives, Bitcoin and gold absorb macro flows differently. It could be driven by the higher volatility of Bitcoin, more speculative positioning, and greater sensitivity to liquidity changes,” the report states.
In particular, in 2025, gold gathered as a safe haven as economic uncertainty increased primarily from trade tariffs, while Bitcoin was held firmly above $100,000.
Bitcoin price analysis
Binance findings arise as Bitcoin faces short-term volatility primarily from geopolitical tensions in the Middle East. Before the escalation, Bitcoin reached nearly $110,000, but it goes back since.
By press time, Bitcoin had traded for $103,897, almost 2% in the last 24 hours and more than 3% per week.
Despite the recent price declines, Binance noted that demand for assets remains strong, especially when considering Spot BTC Exchange-Traded Funds (ETFS).
To this end, these products have seen a net inflow of $2.4 billion over the eight days until June 18th, indicating that long-term investors continue to buy DIP.
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