A depreciation of the US dollar often signals the prelude to a bullish market breakout.

The core logic is actually quite simple—when the US dollar index is under pressure, it means a large amount of capital is fleeing the US market. Previously, for a period of time, hot money worldwide flooded into the US mainly to take advantage of the Federal Reserve's high interest rates. As a result, the dollar's value remained high, even with the Fed's excessive money printing, hovering around 7.3.

But this situation is changing. The decline in the U price essentially reflects a shift in liquidity—US interest attractiveness is waning during a recession, and hot money is starting to look for new destinations. Historical experience tells us that this is precisely the opportunity window for the crypto market.

As representatives of risk assets, BTC and ETH often benefit first at this stage. Once the Fed's rate cut expectations are confirmed, liquidity will be redistributed, and cryptocurrencies are usually a key target for reallocation of funds. So instead of worrying about short-term fluctuations, it’s better to pay attention to this deeper change in capital flow.