Bitcoin ETFs Surge Amid Dollar Decline and Fed Speculation

According to Cointelegraph, Wall Street investors have injected over $1 billion into spot Bitcoin ETFs this week, aligning with the U.S. dollar's ongoing depreciation. This influx comes as U.S. President Donald Trump considers replacing Federal Reserve Chair Jerome Powell, a move that has intensified dollar selloffs and pushed the U.S. Dollar Index (DXY) to its lowest point since April 2022. Analysts caution that July could be pivotal for the dollar, potentially triggering a significant breakdown and propelling Bitcoin towards new highs. The recent surge in Bitcoin ETF investments, totaling over 9,722 BTC or approximately $1.04 billion in net inflows, reflects a growing risk appetite among both retail traders and institutional investors. More than half of these inflows occurred on June 25, following a Wall Street Journal report suggesting Trump's potential announcement of a Fed Chair replacement by September. This speculation has led to a 1.23% drop in the DXY, highlighting the dollar's vulnerability amid increased bets on Federal Reserve rate cuts. The probability of a 25 basis point reduction in September has risen to 69%, up from 47.70% a month ago. Historically, lower interest rates have diminished the appeal of the dollar while boosting demand for non-yielding assets like stocks and cryptocurrencies. Bitcoin's price has climbed over 2% to around $108,360 since the report, further supported by ETF inflows. Analysts suggest that the dollar faces a "do-or-die" scenario in July, with the DXY testing critical support levels near 97.50. A breach below this threshold could lead to significant implications for commodities, gold, and emerging market flows, potentially setting the tone for the second half of the year. The dollar's outlook, coupled with an increase in M2 supply, may drive Wall Street investors to aggressively acquire Bitcoin, as noted by analyst Lark Davis. Multiple chartists predict Bitcoin could reach $150,000 or higher by the end of 2025. However, this article does not offer investment advice or recommendations. Readers are encouraged to conduct their own research before making any investment decisions, as all trading activities involve risk.