MACRO CRYPTO ALERT!
The Dollar PLUNGES below 98
The "Risk Season" is UNLEASHED for #bitcoin and the #altcoins with Rate Cuts on the Horizon?
The Dollar Index (DXY), which measures the strength of the US dollar against a basket of major world currencies, has fallen below 98 points for the first time since early 2022.
This movement is a critical indicator of a shift in global currency markets and creates a potentially favorable environment for risk assets, especially cryptocurrencies like #BTC
DXY in Free Fall: The US dollar has lost strength, falling below 98 points on the DXY. Historically, a DXY above 100 indicated dollar dominance and risk aversion, which pressured speculative assets.
Implications for Crypto and Risk Assets: A weaker dollar typically translates into looser financial conditions, greater global liquidity, and a boost for risk assets like cryptocurrencies and equities.
Lower Inflation: Overall inflation in the US stood at 2.4% year-on-year, slightly below estimates, reinforcing expectations for a more moderate monetary policy by the Federal Reserve #Fed
Rate Cut Almost Assured: The CME FedWatch tool indicates a 99.8% probability of a rate cut at the next Federal Reserve meeting in June, with a target range expected to fall to 4.25-4.50%.
Additional Pressure Factors: Growing narratives of de-dollarization and political uncertainty generated by the trade and tariff policies of the administration #TRUMP are also contributing to eroding confidence in the dollar and accelerating its decline.