According to CoinDesk, bitcoin has not yet reached its all-time high in U.S. dollar terms from November 2021, but it has already surpassed record highs in local currencies in various markets worldwide. The U.S. dollar index (DXY) has increased by 10.7% since November 21, causing many currencies to lose value. Countries where bitcoin has achieved new highs in local terms include economic powerhouses such as China, Japan, the U.K., and India, as well as emerging markets like Argentina, Turkey, and Egypt.
Aurelie Barthere, an analyst at Nansen, stated that U.S. growth has remained exceptionally strong compared to Europe, the U.K., and Japan, supporting the U.S. dollar. However, she noted that this trend might not continue due to recent weak consumption and housing data in the U.S. Barthere sees the DXY linked to crypto prices through the intermediary of the rates channel.
Japan has been a particularly weak case, with a 24% decline in the yen leading to bitcoin hitting a record price in the country before this week's surge in bitcoin prices. March Zheng, Managing Partner of Bizantine Capital, explained in an interview with CoinDesk that Japan's government has been devaluing the yen, and the flow of liquidity has trickled into bitcoin as their fiat currency has weakened.
