Bitcoin Tops $72,000 as Fed-Friendly Backdrop and Softer Dollar Lift Sentiment

Bitcoin extended Wednesday's rally into Thursday, pushing above $72,000 for its strongest level since June 1. The move followed a bout of relief in the bond market after the White House signaled support for U.S. Treasuries. Pedro Fontes, a research analyst at crypto exchange Mercado Bitcoin, said the longer-term setup for bitcoin may be reinforced by the Federal Reserve. "This is precisely the kind of environment that strengthens the case for Bitcoin," he wrote. "If the world's largest debt market needs support in order to function with greater stability, demand grows for assets that are scarce, predictable, and outside the logic of public debt expansion." The Dollar Index (DXY), which tracks the U.S. currency against a basket of major peers, fell 0.88% on Wednesday to 98.77, its lowest level since May. Matt Cole, founder and CEO of Strive, said on X that he views the index as being in a "structural decline" and expects that trend to persist—an outcome he said could be constructive for bitcoin. Markets are now watching for additional cues from the White House, along with geopolitical developments that could influence yields and prompt further intervention. U.S. initial jobless claims may also shape expectations. CoinGlass data show the past 24 hours saw more than $3.3 billion in liquidations, including about $3 billion from short positions. That reduces the amount of short exposure vulnerable to forced buying that could propel crypto higher. Even so, bitcoin's margin-borrow rate has climbed to 4.6% from 3.9% before the rally, indicating some traders may be rebuilding short positions. On the technical side, bitcoin's weekly chart is pressing above key resistance near $68,000 after a 14% advance. With more than a day left in the week, a confirmed weekly close above that level would clear the way for a retest of the next resistance zone around $78,000.