A weak dollar has opened the way for bitcoin to hit a new all-time high

The U.S. dollar index (DXY) fell below the 98 mark – the lowest value in more than two years. Against the background of the weakening dollar, investors are more actively moving into risky assets, including cryptocurrency. Such dynamics, according to analysts, may become a catalyst for price impulse in the market.

Inflation data in the US turned out to be weaker than expected: the annual level of consumer prices amounted to 2.4% against the forecast of 2.5%. This strengthened the position of supporters of Fed policy easing. According to CME FedWatch, 97% of market participants are confident that the rate will remain unchanged at the next meeting.

An additional bullish signal was the recorded deficit of bitcoin supply. Analysts note active accumulation: coins continue to flock to cold wallets, and reserves on OTC platforms are declining.

According to CryptoQuant, bitcoin volume on OTC platforms used for large transactions has fallen 19% since the beginning of the year to 134,252 BTC. That’s a historic low, suggesting that access to liquidity is difficult for large buyers.

Lower supply and rising demand amid a weak dollar are forming ideal conditions for a possible upward breakout. The combination of macroeconomic factors and onchain metrics points to the emerging momentum.

Analysts warn that high volatility in the market is likely in the coming weeks. Investors are expecting new signals from the Fed and watching inflation dynamics, assessing the chances of a U.S. monetary policy reversal.