$RIVER
🚨 The U.S. Dollar Index (DXY) could be heading for serious downside — and here’s the thinking behind it.
For the first time in decades, U.S. policymakers appear willing to step in to slow the Japanese yen’s decline. This kind of move is known as currency intervention.
How does it work?
To support the yen, authorities would need to inject new U.S. dollars into the system and use them to buy yen. That process naturally strengthens the yen — and at the same time, puts pressure on the U.S. dollar.
A weaker dollar isn’t necessarily bad news for the U.S. government. In fact, it can help in several ways:
Long-term debt becomes easier to manage as inflation rises
U.S. exports become more competitive globally
Budget and trade deficits can improve over time
For investors, though, this kind of environment can be a big deal.
We saw something similar in mid-2024, when Japan’s Ministry of Finance stepped in to defend the yen. Markets turned choppy for a while, found a bottom, and then risk assets took off. Bitcoin and altcoins pushed to fresh highs soon after.
The difference now?
This time, the pressure point could come from the Federal Reserve itself, not Japan alone.
Short-term volatility is likely if this plays out. But historically, when the dollar weakens, scarce assets tend to shine. If dollar devaluation accelerates, Bitcoin and altcoins could enter a powerful upside phase 🚀
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