A weakening US dollar could be bullish for Bitcoin, but two metrics could be cause for concern in the short term, according to Real Vision crypto analyst Jamie Coutts.
“While my framework is turning bullish as the dollar plunges, two metrics still raise alarms: Treasury Bond volatility (MOVE Index) and Corporate Bond spreads,” said Coutts in a March 9 post on X.
The analyst framed Bitcoin as a “game of chicken” with central banks, presenting a “cautiously bullish” outlook despite these concerning metrics.
The US Dollar Index (DXY) has declined to a four-month low of 103.85 on March 10, according to Market Watch. DXY is an index of the value of the greenback relative to a basket of other currencies.
Coutts explained that US Treasuries function as global collateral and increased Treasury volatility forces