$BTC #BTC
The weakness of the dollar increases the appeal of bitcoin.
Higher interest rates do not increase federal debt, but complicate refinancing costs. The yield on 20-year Treasury bonds has risen from 4.6% to 4.9% in the last three months, indicating that investors remain uncertain about whether inflation is under control. The market demands a higher premium, indicating uncertainty about the Federal Reserve's stance.
Meanwhile, the U.S. dollar index (DXY) has fallen from 104 in March to 99, approaching its lowest level in three years. If markets interpret a surprise cut as a sign of recession risk, the U.S. dollar could weaken further. In that scenario, demand for inflation-resistant assets, such as bitcoin, could increase significantly, making surpassing USD 120,000 not only possible but increasingly logical.
