Dollar Doomed? Bitcoin to Boom! 🚀💰

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Hark! The US dollar index, that vainglorious symbol of American might, hath tumbled to its nadir since April of the year 2022! 📉 A most lamentable state, brought on by the unseemly squabble ‘twixt China and the US, and those damnable jitters in the bond market. O, the indignity!

The DXY index, a knavish device that measures the greenback against a motley crew of currencies—the Euro, the Sterling, the Yen—hath plummeted to a mere $99! A fall of 10% from its zenith this year. ‘Tis a calamity, I say! 🎭

This cataclysm occurred after China, in its infinite wisdom (or perhaps spite), announced retaliatory tariffs against the United States. Now, every US good entering that Middle Kingdom shall face a monstrous 125% tariff! 🤑 This, after the US imposed a 145% levy on Chinese goods. A game of chicken, indeed, with Trump likely to respond in kind. What folly!

But hold! This woeful crash of the US dollar index may yet bring cheer to those daring souls who dabble in risk assets like Bitcoin (BTC) and altcoins. For a weaker dollar doth often nudge investors toward Bitcoin, that digital gold, deemed a store of value due to its limited supply of 21 million. 🤔

Furthermore, Bitcoin and its altcoin brethren are traded against the US dollar or Tether (USDT), a stablecoin tethered to the greenback. Thus, a falling dollar may render Bitcoin more attractive, a veritable bargain for the discerning investor. 🤩

Bitcoin and altcoin prices may benefit if the Fed slashes rates

This ongoing dollar debacle unfolds as investors fret over a potential recession in the US. A Polymarket poll, that oracle of our times, puts the odds of a recession at 63%, while Kalshi’s soothsayers predict an even higher 65%. 😨

Mark Zandi, the chief economist at Moody’s, a man of no small repute, also reckons the odds of a recession at 60%, blaming those infernal tariffs as a major culprit. Alas, alack!

With US inflation waning, rumors abound that the Federal Reserve, in its infinite wisdom (or panic), may intervene by slashing rates this year. Odds of an emergency rate cut have surged to 31% on Polymarket, while traders anticipate no fewer than three cuts this year. 🤯

Bitcoin and altcoins tend to flourish when the Fed loosens its purse strings and the US dollar index takes a tumble. Remember the pandemic? Crypto prices soared as the dollar index plunged to $89.25 and the Fed unleashed a torrent of rate cuts. Ah, those halcyon days! 😌

This weakening dollar, in part, explains why Bitcoin and its altcoin companions held steady on Friday. Bitcoin was trading at a princely $82,000, while XRP lingered at a humble $2. Such is the state of affairs, mes amis! 🧐

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2025-04-11 16:28