Bitcoin has experienced a remarkable surge in the past week, closing with its highest weekly candle ever and witnessing significant liquidations of over $650 million. This dramatic price movement was triggered by short traders exiting positions and followed by quick corrections in long positions. Despite this volatility, Bitcoin continues to demonstrate strength, holding onto key support levels around $96K to $102K. Ethereum has lagged behind in its performance.
A recent Moody’s downgrade of the US government’s credit rating from AAA to AA1 to cite rising deficits and interest costs has impacted the broader market. This has resulted in the US Dollar Index (DXY) falling to 100.85, potentially creating a favorable environment for Bitcoin. The article explores how these macroeconomic shifts are impacting the crypto markets.