The US Dollar Index (DXY) is worth paying attention to. Recent trends indicate that DXY is showing signs of accelerating upward, and this is no small matter. Once DXY breaks through the key level of 100, it may continue to surge up to 104, or even higher.

What does this mean for the crypto market? Simply put— a strong dollar usually puts pressure on risk assets. Assets like BTC, Ethereum, and gold all fall into the category of risk assets. When the dollar appreciates, funds tend to flow out of these higher-risk assets and into more stable dollar-denominated assets. Therefore, the upward pressure on DXY directly translates into downward pressure on crypto assets like BTC. This is the basic logic of market operation. In other words, paying attention to the movement of the US Dollar Index is like preemptively making a risk management plan for your asset allocation.