COINOTAG News reported on March 10th that Jamie Coutts, a prominent crypto analyst at Real Vision, highlighted the potential for Bitcoin to rise amid a weakening dollar. However, he warned of two critical indicators that could signal short-term challenges. While acknowledging the dollar’s significant drop, Coutts described his outlook for Bitcoin as increasingly bullish, albeit tempered by caution due to the US Treasury Bond Volatility (MOVE Index) and widening corporate bond spreads.
The MOVE Index serves as a gauge of expected volatility within the US Treasury market. Though currently stable, it shows an upward trend that could foreshadow tightening liquidity conditions. Additionally, corporate bond spreads have experienced widening for three consecutive weeks, with historical data suggesting that reversals in these spreads occur at Bitcoin price peaks.
In summary, while Coutts recognizes the dollar’s devaluation—its most significant monthly decline in over a decade—as a central factor driving his bullish stance, he indicates that the accompanying indicators suggest caution in the near term, imparting a cautiously bullish sentiment toward Bitcoin’s future prospects.