The dollar index (DXY), a measure of the U.S. dollar’s strength against a basket of major global currencies, dropped below 98 for the first time since early 2022.
This move signals a notable shift in global currency markets and could create a favorable environment for risk assets, especially cryptocurrencies, like bitcoin BTC.
In recent years, a DXY reading above 100 has typically reflected dollar dominance and a risk-off sentiment, often weighing on equities and digital assets. Conversely, a weakening dollar eases financial conditions, boosts global liquidity, and tends to benefit speculative assets.
📖 Related Reading
Several factors are contributing to the current decline. US headline inflation came in at 2.4 percent year-over-year, slightly below the consensus estimate of 2.5 percent, strengthening market expectations for a dovish monetary policy shift.
According to the CME FedWatch Tool, markets are now pricing in a 99.8 percent probability of a rate cut at the June Federal Reserve meeting, with the target range expected to drop to 4.25 to 4.50 percent.
Growing narratives around de-dollarization, combined with policy uncertainty from the Trump administration’s trade and tariff policies, have eroded confidence in the dollar, accelerating its decline.
** Read more:U.S. Dollar to Slide Further This Summer, Bank of America Warns**
🔗 You Might Also Be Interested In
AAVE Breaks Key Resistance as DeFi Sector Heats Up
The End of Bitcoin Maximalism
Digital Assets Are One Step Closer to Regulatory Clarity
💡 Stay updated with the latest cryptocurrency news and insights by following our website! 🔔 Bookmark this site to get first-hand blockchain and digital currency news!