The US Dollar Index has fallen below the key support level of 98, which has a direct impact on the crypto market.

When the dollar weakens, it usually boosts the performance of risk assets like Bitcoin — investors tend to seek hedges during a dollar depreciation cycle. As the most liquid digital asset, BTC often leads the inflow of funds.

The recent decline in the US Dollar Index coincides with a rebound point in the crypto market. Traders are generally paying attention to BTC's performance during this period, especially whether it can break through previous highs. In the short term, the continued weakening of the dollar may further support BTC.

However, it is also important to note that the fluctuations of the US Dollar Index are often influenced by multiple factors — Federal Reserve policy expectations, global economic data, and more. Therefore, relying solely on the US Dollar Index for judgment is not enough; a comprehensive analysis combining other market indicators is necessary.