The dollar falls below 100, triggering a life-and-death situation for Bitcoin!
The drop of the dollar index below 100 seems to be a result of Trump's tariff hammer destroying its own supply chain, causing U.S. auto costs to surge by $6,500. At a deeper level, the Federal Reserve is cornered - cutting rates fears inflation backlash, while raising rates fears a stock market crash. Currently, the interest rate swap market is betting on five rate cuts this year.
Short-term: The dollar index breaking 100 will stimulate Bitcoin to soar to $90,000, but if any economic data blows up, like the unemployment rate breaking 5%, Bitcoin will immediately perform a high-altitude dive;
Mid-term: Watch the Federal Reserve; if they dare to cut rates in May, Bitcoin could hit $100,000, but beware of a global asset sell-off triggered by the collapse of the dollar's credibility;
Long-term: If Trump's tariff war continues to self-destruct, the dollar's reserve status could indeed be doomed, and at that time, Bitcoin will truly be digital gold, but that is still a long way off.
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