CryptoQuant reported a rise of $BTC amid a decline in the dollar index

The US Dollar Index (DXY) has dropped to its lowest level in over two decades, which could be favorable for Bitcoin. This was stated by analysts at CryptoQuant. According to their data, the current value of the indicator is 6.5 points below the 200-day moving average — the largest negative deviation in 21 years.

CryptoQuant emphasized that such a situation is usually favorable for risk assets, particularly for the first cryptocurrency. When the dollar loses its appeal as a 'safe haven', investors begin to redistribute capital in favor of alternative assets, the experts noted.

Moreover, analysts pointed to historical periods when the DXY traded below its 365-day average. During such phases, the Bitcoin market showed growth, which is associated with an increase in global liquidity that partially flows into the cryptocurrency market, the report states.