Group 1 - The dollar index (DXY00) increased by +0.27% due to higher T-note yields and supportive comments from Richmond Fed President Tom Barkin regarding tax cuts and deregulation boosting growth this year [1] - The dollar experienced a decline after the December S&P services PMI was revised down by -0.4 to 52.5, along with dovish comments from Fed Governor Stephen Miran predicting over 100 basis points of Fed rate cuts this year [2][3] - Fed Governor Stephen Miran stated that the current Fed policy is "clearly restrictive" and justified more than 100 basis points of rate cuts this year, with markets pricing in a 16% chance of a -25 basis point cut at the upcoming FOMC meeting [4] Group 2 - The dollar is under pressure as the FOMC is expected to cut interest rates by about -50 basis points in 2026, while the Bank of Japan (BOJ) is anticipated to raise rates by +25 basis points in the same year [5] - The dollar's weakness is compounded by the Fed's liquidity boost through purchasing $40 billion a month in T-bills and concerns over President Trump's potential appointment of a dovish Fed Chair, with Kevin Hassett being the likely candidate [6]

Market Trends & Geopolitical Shifts - Sovereign nations currently favor gold as a safe-haven asset, while individual investors prefer Bitcoin due to its volatility and self-custody features [1] - BitMEX anticipates Bitcoin potentially aligning with gold in the long term regarding the dollar debasement narrative [1] - The shift towards Yuan-settled oil trades between Saudi Arabia and China represents a geopolitical change that could weaken the U S dollar's dominance [1] Bitcoin & Gold Performance - Sovereign buying will differentiate the short-term performance of Bitcoin and gold [1] - The weakening of the U S dollar's hegemony could support Bitcoin's long-term value [1]

Market Trends - US shutdown panic is pushing investors into Bitcoin [1] - Bitcoin is being considered as the new safe-haven asset [1]