Wall Street has invested over $1 billion into Bitcoin ETFs this week, coinciding with a decline in the US dollar and increasing expectations for Federal Reserve rate cuts. Following a Wall Street Journal report suggesting that Donald Trump may replace Fed Chair Jerome Powell, the US Dollar Index (DXY) dropped to its lowest since April 2022. Bitcoin’s price rose over 2% to approximately $108,360 amid a significant influx of over 9,722 BTC into ETFs. Analysts suggest that if the dollar breaks below a critical support level around 97.50, it could lead to a larger downturn and further increase demand for cryptocurrencies, possibly pushing Bitcoin toward new highs. The combination of a weakening dollar and growing institutional investment reflects a rising risk appetite among investors, indicating potential shifts in market dynamics in the second half of the year.

Source 🔗