The US dollar index disrupted, which raises the hopes of bitcoin and altcoin

The US dollar index has shattered its lowest level since April 2022 with the escalation of the trade war between China and the United States and tensions continued in the bond market.

The DXY index, which tracks Greenback against a basket of advanced global currencies such as the euro, the pound sterling, and the Japanese yen, decreased to $ 99-took 10 % of its highest point this year.

This incident came after China announced the revenge definitions against the United States. All American goods that enter the country now will face 125 % global tariff. Beijing issued this announcement after the United States imposed a 145 % tax on most Chinese goods. As such, revenge indicates that the chicken game will continue, with Trump’s response somewhat.

The continuous collapse of the US dollar index may benefit from assets such as Bitcoin (BTC) And altcoins. This is because the weakest US dollar usually pushes investors towards Bitcoin, which is often seen as a valuable store due to the 21 million width ceiling.

Moreover, Bitcoin and most Altcoins are traded primarily against the US dollar or rope (USDTStablecoin supported by Greenback. As a result, it may make the Bitcoin falling dollar look cheaper and more attractive.

Bitcoin and Altcoin prices may benefit if the Federal Reserve Department deportes prices

The continuous collapse of the US dollar index occurs, as investors are still concerned that the United States may move towards stagnation. A Polymers poll It puts the chances of stagnation in the United States this year by 63 %, while Possibilities such as Shi A little higher at 65 %.

Mark Zandy, the chief economist in Moody’s, put the possibility of recession by 60 %, citing high definitions as a major shareholder.

with Inflation falls in the United Statesand There is increasing speculation that The federal reserve may interfere By lowering prices this year. The chances of reducing the emergency rate increased to 31 % on polymarket, while traders expect three discounts throughout the year.

Bitcoin and Altcoins tend to prosper when the Federal Reserve reduces interest rates and when the US dollar index decreases. For example, encryption prices increased during the epidemic, as the dollar index decreased to $ 89.25 and the Federal Reserve implemented several price cuts.

The weak dollar is partially explained by the reason for the continuation of Bitcoin and other altcoins on Friday. Bitcoin was trading $ 82,000, while XRP hovering at $ 2.