- An analyst spotted a critical signal for risk assets.
- The dollar index dropped below 100 for the first time since 2023.
- A weakening US dollar boosts investors’ appetite for risk assets.
An analyst on X has spotted a developing signal that could trigger a bullish run for cryptocurrencies and risk assets.
In his latest post, the analyst showed how the dollar index fell below 100, a scenario that historically coincides with crypto market rallies and surges in risk asset prices.
When DXY Last Broke 100, Bitcoin Began its Run to New Highs
The analyst’s post highlighted a pattern, revealing that the metric under review had not crossed below 100 since 2023 despite testing the support repeatedly.
The last time it happened coincided with Bitcoin’s recovery from the extended bear market, leading to the 2024 bull run that saw the cryptocurrency reach a new all-time high.
Related: “Once You See This, the Game Becomes Easier”: Analyst on Bitcoin Bull Run
How a Weaker US Dollar Can Fuel Crypto & Risk Asset Gains
For context, a falling dollar index reflects a drop in the value of the US dollar, suggesting a weakening economy for arguably the world’s largest market. Investors observing the situation seek protection for their wealth, leading them to pursue alternative investment sectors away from the mainstream, which is dollar-denominated.
Many investors consider the dollar index a crucial analysis tool, where a drop below 100 represents a significant macro signal. As an alternative explanation, a weaker dollar boosts liquidity appetite, which triggers a move towards risk-on assets like equities, cryptos, and real-world assets (RWAs).
DXY Signal Appears as Bitcoin Recovers From Post-Tariff Dip
TradingView data shows that the newest dollar index dip coincides with Bitcoin’s recovery from a quick fall below $75,000 for the first time in 2025. Many analysts feel that this drop pushed BTC into a demand zone. They believe this will trigger a sustained rally as soon as the volatility caused by Donald Trump’s new tariff policies settles.
Related: Trump Tariffs Shock Markets: Crypto Loses $100B, Bitcoin Price Unstable
Bitcoin traded for $82,812 after recovering from the crash. Bouncing off notable support and aligning with crucial bullish signals has increased BTC’s momentum, leading many analysts to predict an upcoming rally for the crypto market soon.
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