Wall Street pours more than $1 billion into Bitcoin during the "survival" period of USD

Wall Street investors have poured over 1 billion dollars into spot Bitcoin ETF funds this week, coinciding with the prolonged weakening of the US dollar.

1 billion dollars poured into Bitcoin ETF

As of Wednesday, these ETF funds are holding 1,234 million BTC – an increase of over 9.722 BTC in just the past three days, according to data from Glassnode. This equates to a net inflow of approximately 1.04 billion dollars as of the current time this week.

The net inflow of the Bitcoin ETF spot in America | Source: GlassnodeMore than half of the inflow this week occurred on Wednesday, after the Wall Street Journal reported that U.S. President Donald Trump may announce a replacement for Fed Chair Jerome Powell as early as next month.

The US Dollar Index (DXY), which measures the strength of the greenback against major currencies, has decreased by 1.23% since the Wall Street Journal article, reaching its lowest level since April 2022.

Daily price chart of DXY | Source: TradingViewThe weakening dollar occurs against the backdrop of traders increasing bets on the possibility that the Federal Reserve of America (Fed) will cut interest rates at the end of September, with the probability of a 25 basis point cut rising to 69% from 47.7% a month ago.

The target probability of the interest rate for the Fed meeting on September 17 | Source: CMEHistorically low interest rates have reduced demand for the dollar while increasing the appeal of non-yielding assets such as stocks and cryptocurrencies.

The price of BTC has increased by more than 2%, reaching a high of 108,360 dollars since the WSJ report before dropping back to 107,483 dollars at the time of writing. However, the inflow of funds into ETF funds further indicates an increasing trend in risk appetite among both retail and institutional investors.

Daily BTC price chart | Source: TradingView## The "survival" scenario of the dollar is a positive signal for Bitcoin

According to the comments of NorthmanTrader founder – Sven Henrich, the dollar is facing a "survival" scenario in July, based on charts showing that the DXY index is testing an important support area around the level of 97.5.

This support convergence area includes the lower trend line of the multi-year up channel, the lower trend line of the multi-month down channel, and a horizontal support level.

DXY monthly performance chart | Source: Sven Henrich "If it breaks below around 97.5, the next structural support level may only appear in the lower 90s. If the dollar weakens, prepare for serious impacts on commodities, gold, and capital flows from emerging markets. July could shape the macro trend for the second half of the year," analysts at Linq Energy commented on Henrich's forecast.

The prospects of the dollar, combined with the increase in M2 money supply, could cause Wall Street investors to "suck BTC out of the market like a terrible vacuum cleaner," analyst Lark Davis commented on X.

Many chartists predict that Bitcoin will reach the milestone of 150,000 dollars and even higher by the end of 2025.

Minh Anh