Bitcoin's price tends to exhibit negative correlation with the USD.
Whenever the USD appreciates a lot towards EUR, JPY, GBP and other major currencies, Bitcoin's price falls.
The United States Dollar is the leader in such movements. Since 2023 this correlation seems to be breaking down or falling below - 0.5 at least. The USD appreciated not much, but Bitcoin, cryptocurrencies prices rose since the beginning of 2023.
One reason for Bitcoin's movement in 2023 may be that more and more Bitcoin is used as means of transferring payments. In turbulent times of geopolitical uncertainty like currently, people are using Bitcoin to transfer wealth and money, since Bitcoin is virtually untraceable and the geopolitical tensions could hurt the USD status in large emerging economies like Brazil, Russia, India, China, South Africa.
The mistrust towards fiat money in general is feeding into the usage of Bitcoin as a means of payment more and more.
Bitcoin is still far away from replacing even partially the USD as a global reserve currency.
But in some segments like money transfer and wealth preservation Bitcoin is making small, niche inroads.
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