Bitcoin ($BTC) is showing a continuous struggle to keep its pace. On the other hand, the U.S. dollar has been expressing a notable surge since mid-May. As per the data from Glassnode, the ongoing dollar rally is exposing the relative weakness of Bitcoin ($BTC) in comparison with the previous market cycles. In this respect, the price trajectory of the leading crypto asset has diverged significantly from the usual performance.
The dollar has been rallying since May, and bitcoin:native is taking it worse than almost any dollar rally on record.
Across every dollar rally since 2015, bitcoin:native showed significantly more relative strength.
A flip of this relationship would be a positive signal… pic.twitter.com/dEuFWnH4J7
— glassnode (@glassnode) August 1, 2026
Bitcoin Plunges 37 Points Down Historical Trajectory as Dollar Rally Continues
Based on the market data, Bitcoin ($BTC) has expressed resilience during several dollar rallies, sometimes outcompeting expectations. Nevertheless, the current position of Bitcoin ($BTC) indicates a reversal of the respective relationship. Particularly, since the year 2015, Bitcoin ($BTC) presented considerably more relative strength in comparison with the current scenario. Additionally, this rally has positioned $BTC 37 points below the past performance. This underscores the extremity of the underperformance.
The deviation is specifically noticeable because $BTC has several times been considered a hedge against the volatility in the conventional financial market. The present weakness highlights a likely shifting investor sentiment, with traders showing substantial caution amid the worldwide uncertainty. Additionally, the divergence triggers questions regarding Bitcoin’s ($BTC) potential to reclaim the position of a safe-haven asset while dollar dominance is growing.
As the market observers point out, the current price rally of the dollar has paralleled the increased volatility across the crypto sector. At the same time, Bitcoin’s ($BTC) incapability to maintain an upward trajectory during such a time has pushed option traders toward defensive hedging. Along with that, dealer flows have remained insufficient as a counterbalance to the downward pressure.
Risk-Averse Traders Brace for Deeper Corrections
According to Glassnode, Bitcoin’s current market weakness could impact institutional engagement, while risk-averse investors are expecting deeper corrections. Nonetheless, irrespective of this, some market onlookers are of the view that a flip in such a relationship, marked by Bitcoin’s ($BTC) strength recovery against the dollar, would serve as a constructive indication. Keeping this in view, the next weeks will be crucial in ascertaining whether the crypto enters a wider correction or leads to a rebound.