US Dollar Plunger Powers Bitcoin Bull Case, but Other Metrics Remembering: Analyst

A weak US dollar can be bullish for Bitcoin, but the two metrics can cause a short -term concern, according to real vision crypto analyst Jamie Coutts.

“As my plot becomes bullish as the dollar drops, two metrics still raise alarms: volatility of bond bonds (index move) and corporate bonds,” Says Coutts in a post of March 9 in X.

The analyst has frammed Bitcoin as a “chicken game” with central banks, presenting a “careful bullish” perspective beyond them about the metrics.

The US dollar index (DXY) declined to a four -month low of 103.85 on March 10, According to In watching the market. DXY is an index of greenback value relative to a basket of other currencies.

Coutts explained that US wealth Operating as global collateral and increased volatility forces of collateral haircuts, tight liquidity.

The index move, which is a measure of the expected volatility in the US Treasury bond market, is currently stable but climbed, he noticed.

“With the quick refusal of the dollar in March, a volatility could expect compress, or otherwise, for the dollar to reverse,” which is bearish, he said.

Increased volatility of the ark can lead to lighter liquidity conditions, which can potentially force central banks to intervene in ways that will eventually benefit Bitcoin, he suggested.

Meanwhile, corporate bond spreads continue to expand within three weeks, and the major return of the corporate bond bond has historically in conjunction with the top of bitcoin prices, Coutts said.

Coutts concluded that, in general, these metrics painted a negative picture for Bitcoin. “However, the dollar coherence – one of the biggest in 12 years this month – remains the main driver in my plot,” he added.

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Where March 6, hard research Says That a DXY denial “can be a major tail for risk-on assets,” such as stocks and crypto.

Coutts also recognized other bullish factors, including a global race for strategic bitcoin reserves or accumulation by mining, Michael Saylor’s approach Adding Another 100,000 to 200,000 coins in the BTC treasury this year, a potential doubling of ETF positions, and increased liquidity.

“Imagine Bitcoin as a high -stake chicken game with middle planners. In their choice of blur -and thinking the hodlers will remain unbearable -the odds are increasingly in favor of the Bitcoin -owned -owner.”

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