• U.S. dollar index decline could be a historical signal for a market rally for BTC.
• Investor sentiment is beginning to turn in favor of BTC, with a possible price swing.

In the last 24 hours, Bitcoin [BTC] has seen a gradual price increase, crossing back into the $90,000 region. It was around $92,500 as of this writing, following a 6.12% gain.

This recent accumulation is driven by the Dollar Index losing strength and investors gradually building buying momentum.

If sentiment continues to grow, the asset is likely to see a major push to the upside and cross above the $100,000 region.

Dollar index drops—Is this good for BTC?

There has been a decline in the U.S. Dollar Index [DXY], which measures the strength of the dollar against a basket of six commodities.

Historically, a weakening dollar index tends to benefit cryptocurrencies like BTC and altcoins.

In the last two market cycles—2017 and 2021—BTC gained ground and saw major market moves following a decline in the dollar index.

A similar trend was observed with altcoins, which experienced significant gains, as seen in the chart below.

If key levels hold as indicated and the DXY chart follows the pattern of the past two cycles, the cryptocurrency market, particularly BTC, could gain an edge for an upswing.

Impact on Bitcoin price in the market

The amount of Bitcoin sold in the spot market over the past 24 hours has begun to decline. As of the time of writing, BTC sales totaled $163.54 million on the 5th of March but have since dropped to $87.12 million.

If this trend continues, it is more likely that investors will begin accumulating again, leading to increased exchange net inflows.

Similarly, the fund market premium—which measures whether investors are buying or selling based on whether it is above or below zero—was at 0.2 at press time, indicating buying activity.

However, a closer look at the chart shows that the fund market premium has remained at a similar level since March began, moving along a steady line.

This suggests that investors are likely accumulating BTC in anticipation of a major upward move.

Institutional investors stop selling

After days of consistent market outflows from the Bitcoin exchange-traded funds [ETF] market—indicating institutional investors are selling BTC—the sentiment is shifting.

BlackRock, a notable institutional investor with over $50 billion in BTC ETF via IBIT, has stopped selling.

When selling slows or halts, it often signals that investors are reassessing their positions and may soon resume buying, especially in a bullish environment.

At the time of writing, BTC ETFs recorded an inflow of $22 million in the past 24 hours, indicating renewed interest among institutional investors.