The Dollar Index (DXY) dipping below 100 has historically aligned with Bitcoin (BTC) bull runs, delivering gains of over 500% during the last two instances. Now, as trade tensions escalate and US Treasurys face sell-offs, some analysts believe China may be actively working to weaken the US dollar. This added pressure on the dollar heightens the likelihood that it could once again serve as a catalyst for another major Bitcoin rally. 

Is China working to weaken the US dollar?

According to an April 9 Reuters report, China’s central bank has instructed state-owned lenders to “reduce dollar purchases” as the yuan faces significant downward pressure. Large banks were reportedly “told to step up checks when executing dollar purchase orders for their clients,” signaling an effort to “curb speculative trades.”

Some analysts have speculated whether China might be attempting to weaken the dollar in response to recent US import tariff increases. However, Jim Bianco, president of Bianco Research, holds a different view.

Source: X/Jim Bianco

Bianco doubts that China is selling US Treasurys with the intent of harming the US economy. He points out that the DXY has remained steady around the 102 level. While China could sell bonds without converting the proceeds into other currencies—thereby impacting the bond market without destabilizing the dollar—this approach seems counterproductive. According to Bianco, it is unlikely that China is a significant seller of Treasurys, if it is selling them at all.

US Dollar Index (DXY). Source: TradingView / Cointelegraph

The DXY Index remains close to the 104 level seen on March 9 and has consistently stayed within the 100-110 range since November 2022. Therefore, claims that its current level reflects widespread distrust in the US dollar or signals an imminent collapse seem unfounded. In reality, stock market performance is not an accurate measure of investors’ risk perception regarding the economy. 

DXY below 100 is usually followed by Bitcoin bull runs

The last time the DXY Index fell below 100 was in June 2020, a period that coincided with a Bitcoin bull run. During those nine months, Bitcoin surged from $9,450 to $57,490. Similarly, when DXY dropped below 100 in mid-April 2017, Bitcoin’s price skyrocketed from $1,200 to $17,610 within eight months. Whether coincidental or not, the 100 level has historically aligned with significant Bitcoin price gains.

A weakening DXY indicates that the US dollar has lost value against a basket of major currencies such as the euro, Swiss franc, British pound, and Japanese yen. This decline impacts US-based companies by reducing the amount of dollars they earn from foreign revenues, which in turn lowers tax contributions to the US government. This issue is particularly critical given that the US is running an annual deficit exceeding $1.8 trillion.

Similarly, US imports for individuals and businesses become more expensive in dollar terms when the currency weakens, even if prices remain unchanged in foreign currencies. Despite being the world’s largest economy, the US imports $160 billion in oil, $215 billion in passenger vehicles, and $255 billion in computers, smartphones, data servers, and similar products annually.

Related: China’s tariff response may mean more capital flight to crypto: Hayes

A weaker US dollar has a dual negative impact on the economy. It tends to slow consumption as imports become more expensive, and it simultaneously reduces tax revenues from the international earnings of US-based companies. For example, more than 49% of revenues for major corporations like Microsoft, Apple, Tesla, Visa, and Meta come from outside the US. Similarly, companies such as Google and Nvidia derive an estimated 35% or more of their revenues internationally.

Bitcoin’s price could potentially reclaim the $82,000 level regardless of movements in the DXY Index. This could happen as investors grow concerned about potential liquidity injections from the US Federal Reserve to stave off an economic recession. However, if the DXY Index falls below 100, investors may find stronger incentives to turn to alternative hedge instruments like Bitcoin.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Legendary professional wrestler Ric Flair launched a tokenized sticker collection on Telegram on April 9, becoming the latest celebrity to launch a tokenized social project.

Spokespeople for the project told Cointelegraph they are considering rewarding early sticker holders with future perks, though no specifics were shared. Flair told Cointelegraph that the project was launched to drive community engagement and added:

“Telegram is where people are really showing up these days. It is global, it is fast, and the way people communicate there just felt like the perfect fit for what we are doing. These stickers are about energy, personality, and culture, and Telegram is the place to bring that to life.”

The wrestler’s tokenized sticker launch follows mixed-martial arts champion and Irish political candidate Conor McGregor’s memecoin launch on April 5, which failed and highlights the struggle of risk-on investments and digital assets amid the recent macroeconomic downturn.

Flair, who retired from wrestling in 2022, has previously ventured into the crypto space. In 2024, he introduced the “Wooooo!” coin (WOOOOO), a memecoin inspired by his iconic catchphrase. The token has no trading activity as of April 9, 2025, with only one address controlling over 70% of the supply, according to CoinMarketCap.

The legendary wrestler has a history of merchandising his brand through various collectibles, including physical stickers available on his official online store and Amazon.

Wrestling icon Ric Flair joins Telegram and touts new project. Source: Ric Flair

Related: Melania Trump’s memecoin team ‘quietly sold’ $30M, says Bubblemaps

Memecoins suffer in the turbulent macroeconomic environment

Memecoins were one of the biggest narratives of 2024 and one of the highest-performing asset classes, with top-performing memecoins returning four-figure percentage gains to investors during the year.

The market for memecoins and other social tokens peaked in December 2024 amid a historic rally in the crypto markets. However, since then, memecoin prices have plummeted, with many top-tier memecoins such as Dogecoin (DOGE) and Pepe (PEPE) shedding approximately 70-80% of their value over the period.

The macroeconomic uncertainty from the ongoing trade war has also damped the appetite for riskier assets as investors flee into more stable investments like cash, government bonds, and stablecoins.

Crypto markets bleed amid macroeconomic downturn, particularly altcoins, memes, and other social tokens. Source: TradingView

Conor McGregor’s REAL token launched amid the macroeconomic crash and failed to meet its $1 million minimum funding requirement.

The project only managed to raise $392,315 during its April 5-6 sealed-bid auction presale — well under the $3 million goal set by the team and the Real World Gaming decentralized autonomous organization (DAO).

REAL’s developers announced a full refund to bidders after failing to reach the minimum funding target. Despite this, the Real World Gaming DAO signaled that this would not be the end of the project.

Magazine: Memecoins: Betrayal of crypto’s ideals… or its true purpose?

XRP (XRP) price is up 13% on the day, trading above the $2 level after President Donald Trump announced a 90-day pause on all reciprocal tariffs, except for China, which saw an additional 125% hike in response to their counter-tariffs against the US.

XRP’s rally comes on the heels of additional positive news and the XXRP ETF being launched on the New York Stock Exchange (NYSE) Arca. 

Despite the positive macroeconomic and TradFi crypto adoption news, XRP charts still caution that a sharp price downside could lie ahead.

Descending triangle pattern hints at a 33% drop

Since December 2024, XRP price has been forming a potential triangle pattern on its daily chart, characterized by a flat support level mixed with a downward-sloping resistance line.

A descending triangle chart pattern that forms after a strong uptrend is seen as a bearish reversal indicator. As a rule, the setup resolves when the price breaks below the flat support level and falls by as much as the triangle’s maximum height.

The price dropped below the triangle’s support line at $2 on April 6, confirming a potential breakdown move. In this case, the price may fall toward the downside target at around $1.20 by the end of April, down 33% from current price levels.

XRP/USD daily chart. Source: Cointelegraph/TradingView

XRP’s descending triangle target echoes trader CasiTrade’s prediction that the altcoin could drop as low as $1.55 due to a “textbook” Elliott Wave Theory analysis.

“Right now, $1.81 is a critical level to break in this plan,” the trader said in an April 8 post on X, adding that if the price loses that level, it would confirm a deeper move.

According to CasiTrades, the next level to watch would be $1.71, where the price would pause temporarily before the “projected final low” at $1.55.

“Key zone: $1.55 is the golden retracement and the likely end to this entire corrective W2.”

XRP/USD 15-minute chart. Source: CasiTrades

The bearish outlook mirrored veteran trader Peter Brandt’s prediction that XRP price could decline to $1.07 due to a “textbook” head-and-shoulders pattern forming on the daily chart.
Related: Ripple acquisition of Hidden Road a ‘defining moment’ for XRPL — Ripple CTO

Could XXRP ETF launch avert an XRP price sell-off?

Despite the launch of the XXRP ETF on NYSE Arca on April 8, 2025, XRP’s price remains precarious due to a mix of market dynamics and escalating trade wars. 

The 2x leveraged ETF, designed to amplify XRP’s daily returns, debuted amid heightened volatility, with XRP trading at around $1.71 after a 7.4% drop in 24 hours. 

The XXRP ETF attracted $5 million in first-day volume, in what Bloomberg ETF analyst Eric Balchunas termed a commendable achievement considering the ongoing tumult in crypto and other global markets. 

Although this was 200x less than the volume posted by BlackRock’s IBIT ETF on day one, this performance puts XXRP in the top 5% of new ETF launches.

Source: Eric Balchunas

Beyond the XXRP ETF, macroeconomic factors, notably US President Donald Trump’s reciprocal tariffs, take center stage this week, threatening further volatility across crypto markets. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.