The recent dip in the US Dollar Index (DXY) below its 200-day moving average has caught the attention of traders and analysts, signaling a significant shift in the currency's direction. As the greenback weakens, Bitcoin (BTC) continues to hover above the $90,000 mark, maintaining its position amidst market uncertainties.

The drop in the DXY over the last few trading days, amounting to more than 3%, has driven speculation about the outlook for risk assets. Renowned crypto analyst Lark Davis sees the weakening dollar and global monetary expansion as favorable factors for digital assets. Reports of the US government's efforts to establish a strategic Bitcoin reserve further fuel optimism in the crypto market, though short-term volatility remains a concern.

Drawing parallels to past cycles, analyst Dan Gambardello suggests that historical trends indicate a potential bullish momentum for Bitcoin and altcoins. With market fundamentals reportedly stronger this time around, there is a belief that a significant rally could be on the horizon.

President Trump's trade policies have also been implicated in the DXY's decline, with his tariff tactics adding pressure on the dollar and influencing the Federal Reserve's decisions. Technical analysts are closely monitoring key support and resistance levels, with the 105.3 and 103.7 thresholds being critical markers for future price movements.

Additionally, the global M2 money supply growth is seen as a catalyst for a potential surge in Bitcoin's price by analysts, underscoring the ongoing correlation between liquidity expansion and digital asset performance. As Bitcoin continues to trade steadily around $91,293, market participants are advised to stay vigilant and conduct their own research in navigating the dynamic landscape of digital assets.