2 days ago
Bitcoin (BTC) traded tentatively beneath $118,000 aft better-than-expected U.S. maturation information pushed the dollar scale to a five-week high.
The dollar scale (DXY), which gauges the greenback's worth against large currencies, roseate to 99.34, the highest since June 23, according to information root TradingView.
The dollar recovered a bid from the better-than-expected U.S. gross home merchandise (GDP) data, which showed the system expanded astatine a 3% annualized gait successful the 2nd quarter.
A crisp driblet successful imports drove the GDP higher. Meanwhile, user spending climbed 1.4% pursuing archetypal quarter's 0.5% successful a motion of recovering home demand. Meanwhile, the gross home purchases terms scale roseate 1.9%, down from 3.4% successful Q1.
The upbeat GDP information apt reinforced expectations that the Fed volition support involvement rates dependable aboriginal Wednesday.
The DXY has stabilized successful caller weeks, ending a crisp downtrend from January highs supra 110.00. Some observers are disquieted that the stableness could shingle retired dollar shorts, adding to the upside momentum successful the planetary reserve currency and downward unit successful the crypto market.
"We spot imaginable near-term risks emerging from overcrowded positioning successful USD shorts. The statement communicative for overmuch of 2025 has revolved astir a weaker Dollar, catalyzed by the ongoing Tariff War, but with the Dollar already down 10% year-to-date, we question however overmuch further it tin fall," Singapore-based QCP Capital's Market Insights squad said.
"CFTC information shows traders highly abbreviated USDJPY, a presumption that is not lone statement but besides costly to money implicit time. In our view, the marketplace is progressively susceptible to a abbreviated compression successful the Dollar, which could unit risk-off unwinds crossed equities, EM, and crypto alike," the squad added.
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