BTC may extend gains on Fed liquidity hopes amid weaker dollar outlook

Bitcoin’s break above $72,000 could leave further upside dependent on continued dollar weakness and whether the Federal Reserve provides more liquidity, according to CoinDesk. Strive CEO Matt Cole said a structurally weaker dollar could create a bullish backdrop for BTC if the trend persists. CoinDesk added, however, that short-term volatility could increase as the recent surge liquidated $3 billion in short positions, reducing room for additional short covering, while BTC margin borrowing rates rose to 4.6% from 3.9%, signaling short positions are starting to build again.