Good morning traders,

The dollar just suffered its worst first-half performance since 1973. Manufacturing data hit three-month lows. The S&P 500 is more overbought than we've seen in nearly a year.

While traditional markets flash warning signals, altcoin markets are positioning for what could be a significant rotation. The same macro forces crushing the dollar are creating tailwinds for digital assets that most traders haven't recognized yet.

Today's analysis connects the macro dots to specific altcoin opportunities emerging from this currency chaos.

Here's what we'll cover today:

Let's dive in.

The macroeconomic landscape is evolving largely as we anticipated. The U.S. dollar is weakening rapidly, creating a more supportive environment for digital assets like Bitcoin.

The Bloomberg Dollar Index has fallen to a new three-year low, in line with our prior analysis that the dollar faces persistent structural challenges. Trade policy uncertainty and shifting expectations around monetary policy continue to weigh on the greenback. As confidence in fiat currencies erodes, investors are increasingly seeking alternatives, positioning crypto assets to benefit from this global shift.

So far in 2025, the dollar has declined nearly 11%, marking its worst first-half performance since 1973. That comparison is significant, as the early 1970s marked the beginning of a multi-year dollar downturn that coincided with outperformance in hard assets like gold. We believe the current environment echoes that period, and this time, Bitcoin joins the conversation.

Meanwhile, U.S. manufacturing remains weak. Key indicators like new orders and employment are still in contraction, with June data showing both slowing demand and rising input costs. The employment index just hit a three-month low, highlighting broader economic softness.

Historically, these signs point to easier financial conditions ahead, as central banks respond with more accommodative policy, something that typically benefits risk-on assets such as crypto.

Gold is holding strong, trading less than $200 below its all-time high. Its recent surge from around $2,400 to over $3,400 underscores sustained demand for alternative stores of value. Notably, Bitcoin now shows a 0.70 correlation with gold, reinforcing its role as a monetary hedge rather than just a speculative tech asset.

At the same time, traditional markets appear stretched. The S&P 500’s Relative Strength Index (RSI) has hit 72, its most overbought level since July 2024. Such technical extremes often precede pullbacks, particularly when economic fundamentals are deteriorating. In these moments, capital tends to flow toward assets that offer diversification and downside protection, like Bitcoin and other digital assets.

The broader picture is clear: Bitcoin trading near all-time highs while the dollar drops to multi-year lows is no coincidence. This reflects a growing “debasement trade,” where investors are actively moving out of depreciating fiat currencies and into scarce, harder assets.

Financial conditions have already begun to ease, and we expect this trend to continue into the second half of the year. Central banks remain under pressure to support growth, and that likely means more liquidity, lower real rates, and continued currency debasement.

This backdrop strengthens the case for digital assets. As monetary policy stays loose and faith in traditional financial systems fades, Bitcoin and crypto offer investors something increasingly rare: a hedge, a store of value, and a long-term opportunity in a shifting world.

Now let’s dive into the part you’re really here for: the charts, key levels, trade scenarios and what’s next for Bitcoin and Altcoins. 🔥 

Gain clarity in chaos, anticipate the next move, and position with precision, only with Sandman Research.

Bitcoin has been trading sideways on low volume for nearly a full week, staying in a tight range between $106,400 and $108,500 from last Wednesday through Tuesday. Midday yesterday, price began breaking lower again, heading toward the key level at $106,100. In fact, price dipped below that level briefly, falling to $105,200 early this morning before reversing and climbing back up. It’s now trading around $107,900, having reclaimed the key $106,100 level.