Bitcoin Soars as Dollar Hums and Real Falls

[umair]

Hey everyone,

Bitcoin is riding a fresh wave of momentum—just broke past its previous all‑time highs, reaching above $113,000. That’s coming at a time when the U.S. dollar is solidifying gains after a brief cooldown, while Brazil’s real is sliding hard under mounting tariff tension. The FX markets are telling a strong narrative: risk assets are still in demand even as trade stress picks up.

President Trump’s announcement of a 50% tariff on Brazilian imports—alongside a similar levy on copper—led Brazil’s currency to drop nearly 3% in a single trading session. While this rattled commodity markets and emerged as a geopolitical flashpoint, it barely dented broader U.S. equity momentum. Stock benchmarks like the S&P 500 and Nasdaq set new records, and Bitcoin surged further, buoyed by confidence that major bulls remain committed.

Macro indicators are also aligning. U.S. jobless claims fell to a seven-week low, Treasury yields ticked up modestly, and recent Federal Reserve meeting minutes hinted at potential rate cuts later this year. That combination is creating fertile ground for bullish sentiment in risk assets, including crypto.

Institutional accumulation continues to dominate the block, with big players scooping up supply off exchanges and shrinking Bitcoin reserves on-chain. Add in favorable crypto policies under the current administration, and the picture looks very encouraging for BTC.

Still, volatility remains a factor. While the dollar index is climbing modestly, the overall sentiment appears skewed toward alternative assets like Bitcoin. The question now is how sustained this rally can be, especially with global trade friction in play and U.S. inflation data on the horizon.

What’s your take—are we looking at the early innings of a sustained Bitcoin bull run, or just another risk-on moment before a pullback? And how much are you weighing macro forces like tariffs, currency moves, and Fed expectations in shaping your BTC strategy?

Would love to hear your views from both trading and long-term investing angles.