The strength of the US Dollar (DXY) has a significant inverse correlation with global liquidity and risk assets like Bitcoin and stocks. When the dollar weakens, global liquidity increases, making it cheaper for international companies to expand and invest, and also increasing the appetite for risk. The DXY has lost approximately 10-12% of its power since the start of the year, while global liquidity has risen by over $6 trillion. Bitcoin typically follows this liquidity trend with a 10-12 week lag. Therefore, a weakening dollar suggests a bullish outlook for risk assets.