QCP Capital Views Dollar Weakness as Positive for Bitcoin

Since the start of the year, the US Dollar Index has fallen by 11% to 98.23 points.

The US Dollar Index (DXY) has fallen to its lowest level in 50 years. Analysts at QCP Capital suggest that the weakening of the US national currency, combined with rising bond yields, has created a bullish signal for digital gold.

Since the beginning of the year, the DXY has dropped by 11% to 98.23 points. Against this backdrop, gold reached a historic high of $3,578. Vtrader crypto platform founder Steven Gregory noted that this indicates active hedging against dollar weakness by institutional investors.

According to the expert, liquidity from the precious metals market will flow into “assets with fixed supply like Bitcoin and Ethereum.”

Simultaneously, global markets are witnessing a bond sell-off. Yields on 30-year government securities in the US, UK, Australia, and Japan have surged. Senior Fellow at the Brookings Institution Robin Brooks described this as an anomalous phenomenon.

It’s really unusual for 30-year Treasury yield to rise in a Fed easing cycle. It’s even more unusual for 30-year yield to rise with all the world’s major central banks in an easing cycle. This tells you monetary policy isn’t the problem. Runaway fiscal deficits are the problem… pic.twitter.com/k7rWDu1ApU

— Robin Brooks (@robin_j_brooks) September 3, 2025

“It’s unusual for 30-year Treasury bonds to rise during a Fed easing cycle,” he wrote.

Brooks noted that many countries have shifted debt issuance to shorter maturities. This has triggered a global rise in long-term government bond yields.

The widening gap between rates indicates growing inflation expectations and concerns about the Fed’s ability to maintain its independence. The Trump administration repeatedly pressured Fed Chair Jerome Powell to ease monetary policy.

Gregory emphasized that amid rising inflation, risky assets, including Bitcoin, are showing leading dynamics. This could create ideal conditions for a new “supercycle” in the crypto market.

Since the start of the year, the first cryptocurrency has risen by 96%, despite a correction from a record $124,545. At the time of writing, digital gold is trading at $110,400.

Earlier in September, market participants predicted Bitcoin’s rise following the Fed’s policy easing.