The US dollar index (DXY) decreased to its lowest level in the fourth month this week as concerns about the slow expansion of the largest economy in the world amid escalating trade tensions.
DXY reached 104.13 on March 6, its lowest level since early November, According to To TradingView. The US dollar index is an index of the value of the green back in relation to the foreign currency basket.
The retreating DXY is often associated with the shift towards the most dangerous assets such as stocks and encryption while moving away from the safety of the US dollar.
The index has just collapsed from the head and shoulders that top the pattern, according to Bravos research, before adding:
“This may be the main wind of assets on risk.”
Breaking: The US dollar has just collapsed from its head and the shoulder that leads the style
This may be the main winds of assets on risk pic.twitter.com/ghf7kdi9iq
– Bravos Research (Bravosrestarch) March 5, 2025
Checks to benefit?
When the dollar weakens, investors search for valuable alternative stores, including bitcoin, encryption assets, and gold, which are often combined when Greenback stumbles.
Since the prices of most encryption assets in US dollars, the weakest dollar also means that it requires more dollars to buy the same amount of BTC or ETH, which may pay prices up. Macro investor Raul Pal feelings, male The second quarter of the year should be useful for encryption.
“With the dollar, the prices are headed and the oil is lower, the financial conditions now reduce the assets of rapid risks and lead a few months. It must indicate a good Q2 for technology and encryption and hope H2 2025, as well as these trends continue.”
Ricardo Evangesta, chief analyst at Activtrades, He said“Traders have turned from pricing in growth and inflationary pressure from Trump’s tariff to expecting a slowdown in the American economy as the country moves towards protectionism.”
“In general, the dollar is on the turn, Societe Genereale Fx Strategist Juckes commented on a memo on March 5.” From the highest levels, the dollar was limited in the upward direction, even if it was a catalyst for falling absent so far, “he added.
Breaking: US dollar
US dollar index $ Dxy It is less than the moving average for 200 days for the first time since November pic.twitter.com/7glrt9pnw
– Barchaart (@barchart) March 5, 2025
Crypting market forecasts
The encryption markets have already started showing signs of recovery today, as the total capitalization reached 2.3 % to $ 3.1 trillion.
Bitcoin regained its decline earlier this week, reaching 92,500 dollars during the morning trading in Asia on Thursday. Meanwhile, Ethereum rises slowly higher than his lowest level in 16 months, adding 6 % a day to reach $ 2300. The heroes are mostly green, with greater gains for the PI (PI), ChainLink (Link), and Bitcoin Cash (BCH).
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