The US Dollar Index (DXY) has risen to a two-month high despite expectations of another rate cut in October. Factors like political instability in France and Japan, as well as CTAs repurchasing the dollar, have contributed to this unexpected increase.

The DXY’s recent surge may be linked to the US government shutdown and ongoing European uncertainties. Analysts predict the index’s rise will continue, potentially impacting Bitcoin’s price movement due to their inverse correlation.

Investors are cautious as the DXY’s recovery could pressure Bitcoin short-term. However, high expectations for a rate cut and gold’s record highs suggest the US dollar may not be a long-term investment priority despite its current strength.

Read more at Yahoo Finance: Crypto Analysts Sound Alarm as US Dollar Index Hits 2-Month High