The US Dollar Index (DXY) has seen a notable decline of 5.4% this week, dropping from 109.881 to 103.967, which some analysts interpret as a bullish signal for Bitcoin.

Typically, a declining DXY indicates an improved risk appetite, favoring assets like Bitcoin, especially amid ongoing regulatory concerns and challenging market conditions.

Historically, a DXY above 100 is considered strong and tends to pressure risk assets; however, the current decline has coincided with a surge in Bitcoin's value.

Coutts has made a bold prediction that Bitcoin could reach new highs by May 2025, based on compelling historical data, although he cautions that past performance does not guarantee future results.

Investor behavior is reflected in the fund market premium, which is currently at 0.2, indicating buying activity and anticipation of a price increase.

Additionally, the growing global M2 money supply is viewed as a potential catalyst for a Bitcoin rally, with expectations of upward price movement by late March 2025.

Currently, Bitcoin is trading above the psychological level of $90,000, maintaining its position ahead of an upcoming crypto summit.

In the last 24 hours, Bitcoin ETFs have seen an inflow of $22 million, highlighting renewed interest from institutional investors.

Analysts suggest that Bitcoin's price could potentially reach around $123,000, with a maximum estimate of $146,000 based on historical data.

As of March 6, 2025, Bitcoin's price was approximately $92,500, reflecting a 6.12% increase attributed to the DXY's decline and increasing buying momentum.

The DXY has dropped below its 200-day moving average for the first time since November 2024, indicating a significant shift in its performance.

Despite macroeconomic concerns such as inflation and slowing GDP growth, the recent DXY decline suggests a complex economic landscape, yet analysts remain optimistic about Bitcoin's potential.