Key Points:
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Wall Street poured more than $1 billion into Bitcoin ETFs this week, as the Federal Reserve stakes increase in tax cuts and weak dollar bets.
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Trump’s early Fed replacement program exacerbated the dollar sell-off, pushing DXY to its lowest point since April 2022.
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Analysts warn that July could trigger a major dollar failure, driving Bitcoin to a new high.
Wall Street investors have put more than $1 billion into spot bitcoin (BTC) ETF this week coincides with the continued decline of the US dollar.
Trump’s Fed Shocking Meets $500 Million Bitcoin ETF Inflow
As of Wednesday, these ETFs held 1234 million BTC, exceeding 9,722 BTC in the past three days. Glass node data. So far this week, this amounts to a net inflow of approximately $1.04 billion.
More than half of this week’s inflows were Wednesday after the Wall Street Journal Report U.S. President Donald Trump may have announced a replacement for Fed Chairman Jerome Powell as early as September.
Since the WSJ report, the US dollar index (DXY) tracks the strength of a basket of foreign currencies, which has dropped by 1.23%, the lowest level since April 2022.
The decline in the dollar is as traders lowered traders’ bets in late September, which Odds From 47.70% a month ago, the decrease of 25 basis points rose to 69%.
Lower rates Historically, demand for the US dollar has decreased, while increasing demand for non-yield assets such as stocks and cryptocurrencies.
Since the WSJ report, BTC prices have risen by more than 2% to around $108,360, with ETF inflows further demonstrating growing risk appetite among retail merchants and institutional investors.
Dollar’s “do-or-die” scenario is bullish on Bitcoin
The dollar looked at the situation of “do or di” in July, according to To Northmantrader founder Sven Henrich, referring to a chart showing DXY tested key support confluences around 97.50.
Convergence includes lower trend lines for multi-monthly ascending channels, lower trend lines for multi-monthly downfall channels and horizontal support.
“Breakthroughs below ~97.5, and low structural support may not appear until the 90s,” Comment Linq Energy analysts added on Henrich’s outlook:
“If the dollar is cracked, expect serious impact on commodity, gold and EM flows. July may set the tone for the 2H macro.”
The prospect of the dollar, plus the increase M2 supplycould prompt Wall Street investors to “take BTC out of the market like vacuums,” analyst Lark Davis pointed out in a series of X posts.
Related: Bitcoin adopts “demlobalization”, Trump’s “big and beautiful Bill”
Multiple Charterists see Bitcoin hit $150,000 Even higher by the end of 2025.
This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.
