Analysts predict bitcoin rally as dollar index falls

The indicator fell below 98 points for the first time since the beginning of 2022

Media : The dollar index fell to a three-year low, which could spark a rally in risk assets

12.06.2025 - 16:05

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What’s new? Dollar Index (DXY), a measure of the strength of the US dollar against a basket of major world currencies, fell below 98 for the first time since the beginning of 2022. According to analysts at CoinDesk, a publication owned by crypto exchange Bullish, the drop signals a marked shift in global currency markets and could create a favorable environment for risky assets, especially cryptocurrencies.

CoinDesk’s material

What else is known? In recent years, a DXY above 100 has typically reflected the dollar’s dominance and traders’ risk aversion, which has often pressured equities and digital assets. In contrast, a weaker dollar increases global liquidity and tends to favor speculative assets.

Several factors are contributing to the current decline. Overall inflation in the US came in at 2,4% year-over-year, compared to a prediction of 2,5%, which reinforces market expectations of monetary policy easing by the US Federal Reserve.

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According to CME FedWatch Tool, markets now estimate the probability of a rate cut at the June Fed meeting at 99,8%. That said, the target range is expected to fall to 4,25-4,5 b.p.

Discussions about de-dollarization combined with political uncertainty over the Trump administration’s trade and tariff policies have undermined confidence in the dollar, accelerating its decline, CoinDesk writes.

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