Bitcoin Hits Its Stride As Dollar Weakness And Treasury Buybacks Fuel Hard-Asset Rally, Galaxy Analysts Call Bottom

With a base case aim of $80,000 and "risks skewed to much higher," a Galaxy trading analyst said that the market shifted from a "sell rips" to a "buy dips" regime.

• The U.S. Dollar Index fell below its 200-day moving average for the first time in more than three months as Bitcoin posted its best week since March 2024.
• Galaxy Digital's Alex Thorn and Beimnet Abebe argued the Treasury's buyback expansion was effectively yield curve control.
• Thorn called the rally a "hard asset story" as gold, silver and Bitcoin surged while the Nasdaq stayed flat.

The U.S. dollar index (DXY) fell below its 200-day moving average for the first time in more than three months, dropping to 98.78 as Bitcoin (BTC) posted its strongest weekly rally since 2024. Galaxy Digital (GLXY) analysts said Bitcoin’s four-year cycle bottom was likely in place. 

Barchart data showed that the DXY had slid below the key technical level that had held as support since mid-May, a breakdown that tends to signal sustained dollar weakness rather than a one-off dip. Meanwhile, Bitcoin posted its best week since March 2024 on Saturday. 

The move played directly into the thesis laid out on Galaxy's podcast on Friday, where the Head of Research, Alex Thorn, and a Galaxy trading analyst, Beimnet Abebe, discussed that the Treasury's decision to double long-end buyback capacity from $2 billion to $4 billion per operation was not about the dollar amount but about the message.