Bitcoin remains above $100,000 when adjusted for the 2021 U.S. dollar value due to a significant shift in its relationship with the world’s leading fiat currency. Historical comparisons in the chart below illustrate how Bitcoin’s price and purchasing power, relative to the U.S. Dollar Index (DXY), have evolved.

Comparing the last bull market to current levels shows a flip in Bitcoin’s strength against the DXY, shown in the purple-shaded regions.

At the peak of the 2021 bull market, Bitcoin’s nominal price outpaced its DXY-adjusted value, reaching $61,000, while its adjusted price hovered around $57,000. Today, with Bitcoin trading near $90,000, its DXY-adjusted value exceeds $100,000. This shift highlights Bitcoin’s increased resilience amid macroeconomic challenges and fluctuations in dollar strength.

The 2020-2021 bull run saw Bitcoin benefit from a weaker dollar, with the DXY stagnating as Bitcoin surged. Conversely, the strengthening dollar through 2022 placed downward pressure on Bitcoin, culminating in a bear market. By 2023, as the DXY softened, Bitcoin initiated a recovery as chances of spot Bitcoin ETF approvals increased. However, its mid-2024 to 2025 trajectory diverges from past trends, as Bitcoin has maintained its rally despite the DXY rebounding to approximately 109.

This development suggests Bitcoin’s value may now be less tethered to dollar weakness, reflecting broader adoption and evolving global economic factors.

Bitcoin’s DXY-adjusted price exceeding its nominal value is a potential indicator of intrinsic strength. Thus, while the price may have fallen below $100,000 relative to today’s dollar compared to 2021, Bitcoin is showing remarkable strength.

The current rally is even more impressive if you factor in four years of dollar inflation ranging from 9.1% to 2.4% versus Bitcoin inflation at 0.84%.

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