Dollar Index Weakness and Fed Balance Sheet Expansion Signal Better Conditions for Bitcoin and Risk Assets

TLDR: Dollar Index has weakened over six weeks, creating liquidity-positive conditions for Bitcoin and equities. Federal Reserve begins balance sheet expansion through Treasury purchases for first time since 2022. Net Fed Liquidity rising after late 2025 decline, expected to continue moderately higher through 2026. Increasing Fed rate cut expectations could accelerate dollar weakness as other [...]

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