US Dollar Index Dips Below 99, Crypto Market Reacts

2 mins mins

Key Points:

The US Dollar Index falls below 99, impacting the crypto market.
Historical DXY dips correlate with Bitcoin rallies.
Analysts expect continued capital flow into cryptocurrencies.

On June 2, the US Dollar Index (DXY) dropped below 99, marking its lowest level since April 2022, with an intraday decline of 0.45%.

The drop in the US Dollar Index is significant as it affects investor sentiment and hints at potential capital inflows into cryptocurrencies.

DXY’s Decline Correlates with Bitcoin Bullish Trends

The breaking of the DXY below 99 aligns with historical patterns indicating bullish trends for Bitcoin. Analysts like jackis and Alex Adler see a potential for increased crypto inflows. Jackis stated, “Each time this has happened in the past, it resulted in a massive bull market for Bitcoin.”

The DXY’s decline signals a possible shift in market dynamics, potentially leading to capital outflows from USD and inflows into risk assets like cryptocurrencies. Alex Adler from CryptoQuant noted, “The interplay between capital outflows from US assets and the declining DXY.” Escalating trade tensions and growing concerns over broader economic fallout, particularly for the US, have weighed heavily on market sentiment.

Although key financial regulators and founders have yet to release official comments, the crypto community exhibits optimism. Market participants are monitoring for new trends that historically coincided with DXY downturns. Bold expectations about the DXY’s impact are closely scrutinized by on-chain and macroeconomists.

Bitcoin’s Historical Surge Amid DXY Weakness: A Detailed Look

Did you know? The last significant decline of the DXY below 99 in April 2022 coincided with a notable increase in Bitcoin’s price, reflecting a historically inverse relationship between the DXY and the crypto market.

Bitcoin (BTC) currently trades at $105,236.25, with a market cap of $2.09 trillion and a market dominance of 63.66%, according to CoinMarketCap as of June 2, 2025. The cryptocurrency has experienced various price changes, showing a 0.84% increase over 24-hours, but a 4.07% decline over the past 7 days.

bitcoin-daily-chart-1313 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 06:52 UTC on June 2, 2025. *Source: CoinMarketCap*

According to Coincu research, the DXY’s weakness may result in increased risk-on investment flows. Bitcoin could benefit as capital rotates toward higher-risk assets, potentially driving its price upward. Historical trends suggest heightened crypto engagement when the DXY underperforms.