Dollar Weakness Fuels Hard-Asset Rally as Galaxy Analysts Call Bitcoin Cycle Bottom
The U.S. dollar index (DXY) dropped below its 200-day moving average for the first time in more than three months, falling to 98.78 as Bitcoin (BTC) posted its strongest weekly rally since March 2024.
This development played into the thesis laid out by Galaxy Digital analysts on their podcast, where they argued that the Treasury's decision to double long-end buyback capacity from $2 billion to $4 billion per operation was a signal of sustained dollar weakness rather than a one-off dip.
Galaxy Digital's Alex Thorn and Beimnet Abebe noted that the Treasury's move effectively implemented yield curve control, which should lead to currency depreciation. They pointed out that gold rose 3.7%, silver increased by 3.9%, while the dollar dropped by 0.8% on the same day.
The analysts believed Bitcoin's four-year cycle bottom was likely in place, with Thorn stating that the market had flipped from a 'sell rips' to a 'buy dips' regime. Thorn added that the largest cost basis cluster in Bitcoin's supply now sits around $64,000, indicating most recent buyers are in profit.