Key Points:

• Bitcoin’s price rally crosses $117,000, partly owing to the declining U.S. dollar, which tends to favor risk assets like stocks and cryptocurrencies.
• Although hitting the dollar-record, Bitcoin still lags behind its historical highs relative to gold and stocks, indicating crucial resistance levels ahead.

Recent Price Trends of Bitcoin

Bitcoin, having achieved an all-time high recently, stands at over $117,000. However, its rises are largely based on the dollar’s reduced strength rather than fundamental crypto triggers. The DXY index, which measures the dollar against other currencies, has declined from 110 to below 98 since the year’s beginning, indicating dollar weakness that typically supports riskier investments.

Cryptocurrency Relative Value

To exhibit genuine strength, Bitcoin must consistently outperform other currencies as it currently trades for just over 35 ounces of gold, compared to a previous peak of around 40 ounces. Similarly, Bitcoin remains lower than its historical values against the S&P 500 and other equities.

Once Bitcoin surmounts these long-standing resistance zones, authentic price discovery may commence. Only in this context can Bitcoin’s performance be truly assessed.