The U.S. Dollar Index (DXY) has registered its weakest annual start since 1973, falling to 97.546 and extending its significant retreat from the 2022 peak of 114.00. This represents the gauge’s steepest yearly decline in over five decades, signaling broader macroeconomic shifts with implications for risk assets.
Historical patterns indicate dollar weakness typically correlates with increased capital flows into high-risk markets, including cryptocurrencies. Bitcoin traders now observe consolidation within the $107,000-$110,000 channel, closely monitoring the $109,500 resistance level for confirmation of upward momentum as liquidity conditions improve.
Market analysts highlight that sustained dollar depreciation could catalyze Bitcoin’s next bullish phase, with technical indicators like the tightening Bollinger Bands signaling potential for an imminent breakout. Easing macro constraints combined with improving market liquidity may provide the necessary fuel for Bitcoin’s ascent in the coming weeks.