According to The Kobeissi Letter, the US Fed Trade Weighted Real Broad Dollar Index is currently trading near a 40-year high, reflecting significant strength against a basket of 26 major trade partner currencies (source: The Kobeissi Letter, June 2, 2025). This elevated dollar valuation, measured on an inflation-adjusted basis, indicates an overvalued USD, which historically has pressured risk assets, including cryptocurrencies. Traders should note that persistent dollar strength often leads to capital outflows from crypto markets, as investors seek safety in the greenback. Monitoring the index’s movements is crucial for anticipating shifts in Bitcoin and altcoin trading volumes due to macroeconomic pressures.