According to Milk Road, the U.S. Dollar Index (DXY) plays a critical role in triggering crypto bull runs. Historical analysis shows that every major Bitcoin rally aligns with looser financial conditions, which occur when the DXY falls, enhancing market liquidity and driving crypto prices upward. Conversely, a strengthening DXY signals tighter liquidity and potential bear markets. This correlation suggests traders should closely monitor DXY trends to anticipate crypto market movements.