A weaker dollar often becomes a tailwind to risk assets, including bitcoin, as occurred in the second half of 2020 and early 2021. The greenback is a global reserve currency, playing an outsized role in global trade and non-bank borrowing. When the dollar strengthens, it causes financial tightening worldwide, disincentivizing risk-taking. The opposite is true when it weakens.
Source: https://www.coindesk.com/markets/2023/11/27/fed-likely-to-be-most-dovish-central-bank-in-2024-research-shows/?utm_medium=referral&utm_source=rss&utm_campaign=headlines