Bitcoin’s uptrend gains traction amid falling inflation and a declining U.S. Dollar Index (DXY), backed by strong technical and on-chain metrics.

Bitcoin surge is taking hold, spurred on by macroeconomic changes and technical signals in step to stimulate hope among traders. Once regarded as a hedge against inflation, the cryptocurrency is now poised for a possible rally this morning after data earlier revealed an incredible twist in economic headlines — inflation has now entered negative territory while the DXY also heads lower.

On April 10, 2025, the Consumer Price Index (CPI) recorded a 0.1% month-over-month decline, marking a deflationary blip that has sent ripples through financial markets. Concurrently, the DXY a measure of the dollar’s strength against a basket of currencies fell to 98.50, its lowest level in weeks. For Bitcoin, these developments have been a catalyst, with its price climbing to $72,000, up from $70,000 just a day earlier.

Although it is no secret that Bitcoin is inversely correlated with the dollar, the degree of correlation at present is striking. Analysts note a Pearson coefficient of -0.65 over the past month, underscoring Bitcoin’s appeal as the dollar weakens. “When the DXY falters, capital often flows into assets like Bitcoin,” observed one market strategist. “This could be the start of a sustained uptrend.”

Technical indicators further bolster the bullish case. Bitcoin’s Relative Strength Index (RSI) hovered at 68 approaching overbought territory but leaving room for further gains. Meanwhile, the MACD chart flashed a bullish crossover, a classic buy signal. On-chain metrics added to the optimism: active Bitcoin addresses surged by 5%, and the network’s hash rate inched upward, reflecting renewed miner confidence.

Yet, the rally isn’t unfolding in isolation. AI-focused tokens, often seen as speculative cousins to Bitcoin, have also edged higher. SingularityNET (AGIX), for instance, rose 3%, with trading volumes spiking a sign that broader market sentiment may be lifting altcoins alongside the crypto giant.

For now, all eyes remain on Bitcoin. If inflation remains subdued and the dollar’s decline persists, the stage could be set for a breakout. But in a market where narratives shift as swiftly as prices, traders are hedging their bets aware that today’s rally could hinge on tomorrow’s economic headlines.