The Chair of the Federal Reserve says financial markets are dealing with a unique set of circumstances that may be contributing to dollar weakness.

In a recent testimony to the US Senate, Powell tells members of the Senate’s banking panel that while the US dollar appears to be doing better, the Fed has yet to formally form an opinion on the matter.

“I would go back to the thought that markets have been digesting an unusually challenging set of circumstances and have reacted the way they reacted. The dollar has kind of stabilized just now, in fact it’s moved back up in the last couple of weeks a bit. There are plenty of people who are still writing that the dollar is still overvalued, we don’t have a view on that of course…

I don’t really have an official view I’d like to share, [but] I think there are possible explanations…one of which is that people still feel the dollar is highly valued, but we’ll see.”

Touching on the subject of tariffs, Powell says markets are in uncharted territory since tariffs have only ever been going down for many decades.

“We’ve been going through a long period where tariffs have been going down. Since World War 2 really, it’s been a process of lowering tariffs globally…

There isn’t a lot of modern learning on that. One of the reasons 1750875178 is so challenging is that we don’t have modern precedent.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Real Vision’s chief crypto analyst says that it’s hard to be anything but bullish toward Bitcoin (BTC), identifying one catalyst that could send the crypto king flying later this year.

In a new thread, crypto strategist Jamie Coutts tells his 36,000 followers on the social media platform X that a recent move in the US Dollar Index (DXY) has historically predated a rally for the flagship digital asset.

“When looking at this recent move in the DXY through a historical lens, it’s challenging to be anything but bullish. I ran a signal screen for three-day negative moves of more than -2% and -2.5% and found they have all occurred at Bitcoin bear market troughs (inflection points) or mid-cycle bull markets (trend continuations).

As always with Bitcoin, the statistical significance of medium-term signals is severely constrained by dataset history (not enough), but this is an objective data point to keep in mind.”

According to Coutts, in 2013, there were eight occasions when the DXY declined by at least 2.5%. BTC went up each time afterward with an average return of 37% in 90 days.

When looking at when the DXY declined less than 2% during the same time frame, the data shows 18 instances, 17 of which saw BTC climbing afterward with an average return of 31.6% in 90 days.

Coutts goes on to say that the stage is set for BTC to skyrocket in a couple of months.

“This week had it all. The DXY saw its 4th largest negative three-day move – massively liquidity-positive. Just as Bitcoin nuked and had its worst Feb in a decade. Meanwhile, in altcoin land, the Top 200 crypto index puked one more time. The chart shows that 365 days of New Lows hit 47%, a hallmark of capitulation in a bull cycle. The stage is set for a new all-time high in Bitcoin and Top 200 aggregate market cap by May.”

Bitcoin is trading for $87,881 at time of writing, a fractional increase on the day.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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