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Dollar Weakness Fuels Bitcoin-Gold Correlation Debate

Dollar Weakness Fuels Bitcoin-Gold Correlation Debate

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The US dollar's decline to a four-year low, with the dollar index touching 95.566, has created a notable divergence in traditional safe-haven assets versus digital alternatives. While gold and silver have surged to record highs, Bitcoin's attempt to reclaim the $90,000 level suggests investors are weighing whether cryptocurrencies will follow precious metals higher or face pressure from broader risk-off sentiment.

This dynamic presents a critical test for Bitcoin's evolving market narrative. If sustained dollar weakness persists, Bitcoin could benefit from similar inflation-hedge characteristics as gold. However, should macroeconomic concerns trigger a flight to traditional safety, Bitcoin may face headwinds despite its recent correlation with precious metals. The coming sessions will reveal whether digital assets can decouple from risk-off pressures or succumb to broader market realities.

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