Will Bitcoin Price Hit $124,000? BTC/DXY Signals Say Yes

Bitcoin (BTC) has been creating all-time highs in the last two days due to increased demand from both retail and institutional traders. As of writing, the Bitcoin price was trading at $117,764, just 0.85% below the newly formed ATH of $118,856. A major ratio comparing BTC’s performance to that of the US dollar signals that the rally might not be over, and the $124,000 level might be reached soon.

BTC/DXY Signals $124,000 Bitcoin Price

BTC/DXY compares the price of Bitcoin to the performance of the US dollar, and currently, it is showing that the largest crypto has yet to reach the January 2025 highs. As the chart below shows, this metric created a record high on January 20, as BTC price reached $106,000 after a rally that happened shortly after President Trump took office.

Despite the gains made by the BTC price since then, BTC/DXY is not at its January highs. For it to do so, it would have to rise by 5.42% from its current level, and if Bitcoin were to also post the same gains, the price could increase to $124,146.

Considering the recent collapse of the US dollar to the lowest level in three years, the Bitcoin price will likely continue with the upward trend because some investors view it to be a good option during currency devaluation. A recent CoinGape analysis also noted that a falling DXY was a bullish catalyst for Bitcoin gains.

Other events also increase the possibility of the Bitcoin price getting to $124,000. The Fed is reportedly considering having interest rate cuts in July, and when this happens, it will not only bode well for crypto assets, but it could further affect the performance of the dollar.

Surging US Debt And Falling DXY Could Drive BTC Gains Further

The level of US debt has been rising, and it recently moved above $36 trillion for the first time in history, which happened alongside the Bitcoin price gains. According to the CIO of Bitwise Matt Hougan, half of this debt, which is around $18 trillion, has been added in the last five years alone, which paints a bearish picture of the DXY.

The concerns about the surging debt have also seen the 10-year note yield increase to 4.40% as investors become concerned about the US’s ability to settle its debts.

These concerns are supporting a bullish Bitcoin price prediction as investors demand to hold Bitcoin because of the fear that inflation will rise. With the dollar also dropping under these circumstances, it shows that the ongoing BTC price rally is still in its early stages.

In conclusion, the ongoing gains in BTC price are likely because of the weak performance of the US dollar that has continued to concern investors. As factors such as the surging US debt signal that the DXY might still crash further, it is possible that Bitcoin reaches $124,000 as the BTC/DXY shows.