How Bitcoin and Gold May Rise Amid US Dollar Decline: Insights from Bank of America

COINOTAG News reports on June 2nd, an analysis by Bank of America indicating that persistent trade policy uncertainty alongside elevated debt levels could maintain downward pressure on the US dollar. Recent high-frequency economic data suggests a potential slowdown, raising concerns that the dollar may further depreciate during the summer months. In contrast, the escalation of inflation expectations, coupled with the Federal Reserve’s limited capacity to respond decisively, creates a conducive environment for dollar-denominated assets like gold and Bitcoin to gain traction. Investors are increasingly leaning toward these assets as a hedge against currency fluctuations and inflationary pressures, marking a significant shift in market dynamics.