According to market analysts, Bitcoin (BTC) has rebounded nearly 10% from weekend lows, supported by the dollar index dropping to 97.27, the lowest level since February 2022, as per TradingView data. This dollar weakness eases financial conditions and boosts risk assets like BTC. Nvidia (NVDA) shares surged to a record high with a strong 90-day correlation to BTC at 0.80, signaling positive market sentiment. Yield curve steepening and falling consumer confidence to 69, below the recession threshold of 80 according to the Conference Board, suggest impending economic risks. Traders are pricing in Fed rate cuts, with swaps indicating easing, which could further support BTC gains.

According to Edward Dowd, the equity market is failing to reach new highs this month, which could be concerning. While the equity market is not currently pricing in a recession, the bond market is signaling potential economic warnings. Traders should be cautious as these indicators may influence equity and bond market movements. Source: Edward Dowd via Twitter.