Bitcoin Rally Driven by Weak Dollar, Rate Cut Hopes

Bitcoin has surged nearly 10% from recent lows, driven by a weakening U.S. dollar, falling Treasury yields, and increased risk appetite signaled by record highs in technology stocks. Speculation is mounting that the Federal Reserve may soon cut interest rates, a scenario historically favorable for Bitcoin. However, Bitcoin is facing short-term technical challenges, as it struggles to hold above its 50-day moving average, raising the risk of a drop below $100,000. Technical indicators point to caution for bullish traders in the near term. Additionally, financial adviser Ric Edelman has raised his recommended crypto allocation, citing strong sector growth potential and changing investor demographics. While macroeconomic trends and institutional endorsements support Bitcoin's long-term outlook, short-term volatility remains a key risk.