Most of BTC’s gains were driven by a short squeeze following the US Treasury's announcement to double the buyback volume of long-term Treasuries. Notably, 30-year yields have already retraced half of yesterday’s drop, and the promised additional liquidity won't start flowing until September.
Why hasn't BTC given back at least 50% of its gains, as has happened so many times after pumps like this? Because the market is looking ahead, and right now, we are seeing a clear push from Washington to weaken USD.
▶️ Middle East escalation strengthens the USD; Trump puts the war on pause
▶️ The yen plunges against the greenback; the US and Japan conduct a joint currency intervention
▶️ The Fed is in no rush to cut rates; the Treasury steps in to lower Treasury yields itself
The US is doing everything it can to weaken the dollar. Since Bitcoin is priced in USD, it directly benefits from the softening American currency.
💬 You can't call the end of the crypto bear market based on a single 200 DMA ($69k) signal, a bull trap remains on the table. But you can follow the macro trend of a weakening dollar, which plays directly into the hands of Bitcoin and gold in the long run.
P.S. The video is just satisfying to watch, share it with your friends so they can see $3 billion in shorts go up in flames overnight 😄