Bitcoin Soars as Dollar Weakness Accelerates with Treasury Buybacks

The US Dollar Index plummeted below its 200-day moving average for the first time in over three months, while Bitcoin posted its strongest weekly rally since March 2024. Galaxy Digital analysts Alex Thorn and Beimnet Abebe attributed this to the Treasury's expanded buyback capacity, effectively implementing yield curve control.

Galaxy Digital's Head of Research, Alex Thorn, called it a 'hard asset story' as gold and silver surged alongside Bitcoin. Thorn argued that the Treasury's decision sent a signal that it would manage the back end of the curve to its liking, which he likened to doubling the size of their 'cannon.'

The analysts believe that this is indicative of a broader shift towards dollar weakness, with Goldman Sachs Chief FX Strategist Robin Brooks warning that markets are primed for dollar debasement to resume. Thorn pointed out that the largest cost basis cluster in Bitcoin's supply now sits around $64,000, meaning the bulk of recent buyers are in profit.