Wall Street buys over $1B in Bitcoin amid dollar's ‘do or die’ moment

Key takeaways:

• Wall Street poured implicit $1 cardinal into Bitcoin ETFs this week amid rising bets connected Fed complaint cuts and a weakening US dollar.

• Trump’s aboriginal Fed replacement plans intensified dollar selloffs, pushing DXY to its lowest since April 2022.

• Analysts pass July could trigger a large dollar breakdown, fueling Bitcoin’s emergence toward caller highs.

Wall Street investors person poured implicit $1 cardinal into spot Bitcoin (BTC) ETFs this week, coinciding with the US dollar’s persistent decline.

Trump’s Fed shocker coincides with >$500 cardinal Bitcoin ETF inflows

As of June 25, these ETFs held 1.234 cardinal BTC, up by much than 9,722 BTC implicit the past 3 days, according to Glassnode data. That amounts to astir $1.04 cardinal successful nett inflows truthful acold this week.

US Spot Bitcoin ETFs nett flows. Source: Glassnode

More than fractional of this week’s inflows came connected June 25, pursuing a Wall Street Journal report that Donald Trump whitethorn denote a replacement for Fed Chair Jerome Powell arsenic aboriginal arsenic September.

The US Dollar Index (DXY), which tracks the greenback’s spot against a handbasket of overseas currencies, fell 1.23% since the WSJ report, hitting its lowest level since April 2022.

DXY regular terms chart. Source: TradingView

The dollar’s diminution comes arsenic traders summation bets connected Federal Reserve complaint cuts aboriginal successful September, with the odds of a 25 ground constituent simplification rising to 69% from 47.70% a period ago.

Target complaint probabilities for Sept. 17 Fed meeting. Source: CME

Lower rates person historically dampened the appetite for the dollar, portion expanding request for non-yielding assets, specified arsenic stocks and cryptocurrencies.

BTC’s terms has risen by implicit 2% to astir $108,360 since the WSJ report, with ETF inflows further suggesting a increasing hazard appetite among retail traders and organization investors.

BTC/USD regular terms chart. Source: TradingView

Dollar’s “do-or-die” script is bullish for Bitcoin

The dollar is looking astatine a “do-or-die” script successful July, according to NorthmanTrader Founder Sven Henrich, referring to a illustration showing DXY investigating a captious enactment confluence adjacent 97.50.

The confluence comprises the little trendline of a multiyear ascending channel, the little trendline of a multimonth descending channel, and a horizontal support.

DXY monthly show chart. Source: Sven Henrich

“Break beneath ~97.5, and the adjacent level of structural enactment whitethorn not travel successful until the debased 90s,” commented analysts astatine Linq Energy connected Henrich’s outlook, adding:

“If the dollar cracks, expect superior implications for commodities, gold, and EM flows. July could acceptable the code for 2H macro.”

The dollar’s outlook, combined with with an summation M2 supply, could punctual Wall Street investors “to suck up BTC disconnected the marketplace similar a f***ing vacuum,” notes expert Lark Davis successful a bid of X posts.

Source: Lark Davis

Related: Bitcoin adoption fueled by ‘deglobalization,’ Trump’s ‘big, beauteous bill’

Multiple chartists spot Bitcoin hitting the $150,000 mark and adjacent higher by the extremity of 2025.

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