According to Andre Dragosch, head of research at Bitwise, the dollar index (DXY) fell to 97.27, the lowest since February 2022, based on TradingView data, which could boost bitcoin's price due to easing financial conditions. Concurrently, Nvidia (NVDA) shares hit a record high with a 90-day correlation coefficient of 0.80 to BTC, indicating strong risk-on sentiment. Kurt S. Altrichter noted that yield curve steepening and consumer confidence dropping to 69, below the recession threshold per Conference Board data, signal recession risks. Traders are pricing in Fed rate cuts, with around 60 basis points of easing expected this year according to Bloomberg and CME FedWatch tool, potentially supporting BTC gains.

According to market analysts, Bitcoin (BTC) has rebounded nearly 10% from weekend lows, supported by the dollar index dropping to 97.27, the lowest level since February 2022, as per TradingView data. This dollar weakness eases financial conditions and boosts risk assets like BTC. Nvidia (NVDA) shares surged to a record high with a strong 90-day correlation to BTC at 0.80, signaling positive market sentiment. Yield curve steepening and falling consumer confidence to 69, below the recession threshold of 80 according to the Conference Board, suggest impending economic risks. Traders are pricing in Fed rate cuts, with swaps indicating easing, which could further support BTC gains.

According to Edward Dowd, the equity market is failing to reach new highs this month, which could be concerning. While the equity market is not currently pricing in a recession, the bond market is signaling potential economic warnings. Traders should be cautious as these indicators may influence equity and bond market movements. Source: Edward Dowd via Twitter.