Dollar Weakness Fuels Bitcoin’s Rise, Though Other Assets Hint at Roadblocks Ahead

Bitcoin Smashes $118K, But True Strength Still Unproven Across Markets

11/7/2025

Bitcoin has powered past $118,000, setting new highs in dollar terms and entering price discovery above $117,000. Yet despite the excitement, the crypto giant still falls short of historic benchmarks when measured against other major assets.

The recent rally has largely been fueled by a declining U.S. dollar, rather than unique catalysts within the crypto space. The U.S. Dollar Index (DXY), which tracks the dollar’s value against a basket of major currencies, has tumbled from around 110 earlier this year to below 98. Traditionally, levels under 100 point to dollar weakness—a trend that generally lifts risk assets like bitcoin.

However, to prove true independent strength, bitcoin needs to outperform other asset classes as well—not simply ride the wave of a weaker dollar. Right now, that broader outperformance is lacking.

For instance, one bitcoin currently equates to just over 35 ounces of gold, down from the peak ratio of about 40 ounces recorded in December 2024. In British pounds, bitcoin is trading near 87,000 pounds (about $117,800), still below its all-time high of 90,000 pounds. Likewise, bitcoin’s ratios relative to major equity benchmarks like the S&P 500 and Nasdaq 100 remain under previous highs.

These metrics represent important resistance zones for bitcoin. A decisive breakout above them would mark genuine price discovery across global markets and confirm that bitcoin’s rally is more than just a response to dollar weakness.

Until that happens, assessing bitcoin purely in dollar terms offers only a partial picture. Measuring BTC’s value against other key assets remains crucial to understanding whether this rally signals real market strength—or is simply the flip side of a softening dollar.