This week’s spotlight shifted to a changing macro backdrop. The Bloomberg Dollar Spot Index stabilized near 1,200 after its sharp drop from January highs, cooling momentum in Bitcoin even as Ethereum and Solana briefly pushed higher before the broad-based correction hit. Meanwhile, gold is on track for its sixth straight weekly gain, fueled by robust ETF inflows and near-record trading volumes.

Equities, however, stumbled into their longest losing streak in over a month, with stretched valuations and tighter monetary expectations weighing on sentiment. Two-year Treasury yields climbed to three-week highs near 3.6%, highlighting a less dovish Fed outlook. The combination of falling equities, rising yields, and a stronger bid for gold underscores a more defensive positioning across markets.

Here’s what we’ll cover today:

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The Bloomberg Dollar Spot Index has stabilized around the 1,200 level after its sharp drop from January highs above 1,300. During this pause in dollar weakness, Bitcoin lost momentum, while high-cap altcoins like Ethereum and Solana managed to push higher, until the recent broad-based correction across digital assets. For Bitcoin to regain bullish momentum, a renewed decline in the dollar could provide the necessary tailwinds for both BTC and altcoins to rally together.

Gold continues its strong performance, on track for a sixth consecutive weekly gain. This advance is fueled by robust institutional demand through major ETF inflows and near-record trading volumes in bullion. As we noted in Wednesday’s report, gold often leads in environments like this, with Bitcoin historically catching up and eventually outperforming. Given Bitcoin’s recent dip, current levels may present compelling risk-reward opportunities if history repeats, more on that later.

Meanwhile, the S&P 500 has entered its longest losing streak in over a month. Daily volatility has shifted toward a clear negative bias as investors grapple with tighter monetary expectations and stretched valuations. While the pullback remains modest compared to past corrections, the persistent downward pressure signals a shift toward more defensive investor sentiment, driving stronger demand for gold.

Two-year Treasury yields have climbed to three-week highs near 3.6%, breaking their prior downtrend that had taken them below 3.4%. The move reflects a reassessment of the Fed’s policy path in light of recent economic data, with bond markets pricing in a less dovish trajectory than expected.

Coming alongside weakness in equities, this yield rebound highlights a more complex macro backdrop, one where investors are increasingly balancing risk-off signals with shifting monetary expectations.

We’re now entering the professional analysis section, covering Bitcoin, Ethereum, and Solana in depth. Using multiple charts and key metrics, we outline actionable scenarios and insights to help you stay ahead of the market heading into the weekend.