Coindesk researcher article published "Study shows the Fed may become the most dovish central bank in 2024." The Federal Reserve will be the most dovish of developed world central banks in 2024, with traders expecting interest rates to be cut by at least 100 basis points, or 1 percentage point, from the current range of 5.25% to 5.5%, Deutsche Bank said. This will weaken the dollar's appeal as a relatively high-yielding asset.

ING said the U.S. economy and inflation are expected to slow next year, allowing the Federal Reserve to pursue easier monetary policy.

Bank of America said in a Nov. 19 World Catalog report that the U.S. dollar's trajectory is turning and "the U.S. dollar may begin to move significantly lower toward equilibrium" next year.

"While we still expect the U.S. to perform relatively well next year relative to other major economies, the prospect of an eventual economic landing and corresponding easing from the Fed, even as policy eases elsewhere, should bring broad relief to global currencies," Bank of America strategists said.

A weaker U.S. dollar often acts as a tailwind for risk assets, including Bitcoin, as happened in the second half of 2020 and early 2021. The U.S. dollar is a global reserve currency and plays an outsized role in global trade and non-bank lending. When the U.S. dollar strengthens, it leads to a global financial tightening and curbs risk-taking behavior. When it weakens, the opposite happens. #美联储 #加密货币 This stance may put pressure on the US dollar. A weaker dollar typically spurs risk-on behavior in both cryptocurrencies and traditional markets.