The dollar index (DXY), indicating the strength of the U.S. dollar against various major currencies, has fallen below 98 for the first time since early 2022. This change marks a significant transition in the global currency scene, which may foster a more favorable setting for risk assets, notably cryptocurrencies such as Bitcoin ($104,377.87).

Key Points:

• The market is anticipating a 99.8% likelihood of a rate cut in June, with expectations of a drop to 4.25 to 4.50 percent.
• The recent inflation rate stands at 2.4% year-on-year, slightly below the expected 2.5%, enhancing the prospects for monetary easing.

This decline in the dollar index generally indicates enhanced financial conditions, amplified global liquidity, and a tendency to benefit speculative investments. Factors behind this drop include a lower-than-expected inflation report and ongoing narratives surrounding the de-dollarization trend, intertwined with uncertainties linked to the trade policies of the previous administration.

Read more: U.S. Dollar to Slide Further This Summer, Bank of America Warns