Bitcoin is getting all the attention again while the economy is in chaos. Buyers are looking for other assets to put their money into as the US dollar weakens and the US bond market has fallen the most since 2019. In the words of Arthur Hayes, co-founder of BitMEX, the unique mix of factors is preparing Bitcoin for what he calls an “up-only mode” a substantial rise that could send BTC prices off the charts.
US Bond Market in Crisis
The benchmark US 10-year Treasury yield hit a two-month high of over 4.59% on April 11. This made people worry about the safety of the financial system. This week, the $29-trillion Treasury market has already lost more than 2%. This is the most significant drop since September 2019. Back then, the repo market had a cash shortage, so the Federal Reserve had to step in. The present price drop makes it seem like another policy change is coming, especially since bond traders now think the Fed will cut rates at least three times before the end of 2025.
Dollar Decline Drives Bitcoin Flight
The US Dollar Index (DXY) went below 100 for the first time since 2022, making things even more chaotic in the financial world. It was the worst week for the index in more than two years. This drop in the dollar’s value has usually been good for Bitcoin. Analysts like Venture founder say that big Bitcoin rises have often come after DXY drops in the past.
Bitcoin Rises Amid Market Chaos
Bond prices went up, and the dollar fell, but Bitcoin went up by over 4.5% and is now worth about $83,250. Hayes said it best in a big X post: “We are about to enter UP ONLY mode for $BTC.” Charting experts like John Bollinger, who made the Bollinger Bands, agree that prices will increase.
Conclusion
Bitcoin is becoming a digital haven as macroeconomic cracks grow and trust in US financial policy fades. Rate cuts are coming, and the dollar is weakening. At the same time, momentum is building for what could be a historic bull run.
