The US dollar has reached a three-year low, with the Dollar Index (DXY) trading at 97.50, its lowest since February 2022. Despite rising geopolitical tensions between Iran and Israel, the dollar has not demonstrated its typical safe-haven strength. Analysts like macroeconomist Lyn Alden have noted the lack of a flight-to-safety bid for the dollar. In contrast, Bitcoin has shown resilience, reclaiming the $107K mark amidst market volatility. Following a dip below $100,000, Bitcoin bounced back and is now underlined by analysts who highlight its strength and ability to recover. Real Vision's Jamie Coutts drew parallels between today's macro environment and early 2000s, suggesting that capital is moving toward emerging markets, with crypto considered the new emerging market. Coutts predicts that, as the dollar weakens, there will be a rotation of capital into high-growth opportunities, such as cryptocurrencies, similar to past trends where the emerging markets thrived during dollar depreciation.

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