Crypto markets faced a downturn for the second consecutive day due to the US Dollar Index (DXY) reaching new highs amidst escalating Treasury yields and worries about the Federal Reserve's monetary strategy. Despite an initial 0.92% drop in the DXY, followed by a sudden surge to $102,000 for Bitcoin (BTC), the index surged to 109.37, marking levels unseen since November 2022. The market also responded negatively to the spike in US Treasury yields, with the 10-year note exceeding 4.7% and the 30-year note hitting 4.93%. Investors are apprehensive about sustained inflation due to President-elect Donald Trump's economic policies likely widening deficits. Consequently, there is a growing anticipation of increased US debt and elevated inflation under the new administration. Bitcoin prices reacted unfavorably to the DXY's strength, with concerns about potential further declines if the $90,000 support level is breached. Read more AI-generated news on: https://app.chaingpt.org/news

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