Dollar Weakness Fuels Bitcoin Rally as Treasury Buybacks Spark Hard Asset Rotation

The U.S. Dollar Index (DXY) fell below its 200-day moving average for the first time in over three months, dropping to 98.78 as Bitcoin posted its strongest weekly rally since March 2024.

Galaxy Digital analysts Alex Thorn and Beimnet Abebe argued that the Treasury's expansion of buyback capacity was effectively yield curve control, which they believed signaled sustained dollar weakness.

Thorn called this a 'hard asset story,' as gold, silver, and Bitcoin surged while the Nasdaq stayed flat. The largest cost basis cluster in Bitcoin's supply now sits around $64,000, meaning the bulk of recent buyers are in profit.