Bitcoin jumps 10% as dollar weakens, Nvidia soars amid recession warnings

Bitcoin (BTC) has jumped nearly 10% from weekend lows, with key market shifts supporting further gains.

The U.S. dollar index reached its lowest level since February 2022, as weak economic data and expectations of a Fed rate cut weighed on the greenback. A weaker dollar typically boosts riskier assets, such as Bitcoin.

Meanwhile, Nvidia (NVDA) surged 4.3% to a record high, continuing its strong correlation with BTC. Both assets have rallied since late 2022, with their 90-day correlation now at 0.80, showing a tight link.

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Bond markets are flashing recession warnings, with the 2-year Treasury yield dropping sharply. A widening gap between 10-year and 2-year yields has historically preceded economic downturns.

Consumer confidence also fell in June, with a key expectations index dropping below levels that often signal a coming recession.

Traders are now betting on Fed rate cuts as soon as July, with swaps pricing in deeper easing this year. Lower rates could further fuel Bitcoin’s rally.