Dollar $USD1 Index Falls Below 98 for the First Time in 3 Years — Crypto Market Set to Surge?
Weaker dollar and cooling inflation spark fresh optimism for Bitcoin $BTC and other risk assets.
📉 The U.S.$USDP Dollar Index (DXY) has dropped below 98, its lowest level since early 2022. This signals a major shift in global currency markets — and could be great news for crypto investors.
📊 Inflation Update:
Latest data shows U.S. inflation at 2.4%, slightly below the expected 2.5%. This has increased market confidence that the Federal Reserve will cut interest rates.
🔻 Rate Cut Incoming?
Markets are now pricing in a 99.8% chance that the Fed will cut rates to 4.25–4.50% at the June meeting. Lower interest rates generally increase liquidity — making risk assets like Bitcoin more attractive.
🚨 Why Is the Dollar Weakening?
Cooling inflation
Expectations of monetary easing
Uncertainty around Trump’s trade policies
Growing global de-dollarization trend
📈 What This Means for Crypto
A falling dollar typically boosts risk assets like Bitcoin, which has already climbed past $106,000. Many analysts now believe that $200K BTC by year-end is possible
if the trend continues.
