Hey VIPs! Stay ahead with this week’s Market Commentary from Binance Research ⬇️

💵 Dollar Decline and Conflicting Signals

The dollar continued its year-long decline, ending the week down 2.2%. Mixed messages from the Trump administration—Trump’s positive spin on dollar weakness for exporters versus Treasury Secretary Scott Bessent’s commitment to a strong dollar policy—triggered market volatility and bearish sentiment.

📊 Bitcoin’s Drop vs. Gold’s Surge as a Hedge

Despite a weaker dollar, Bitcoin fell 5.8% last week while gold jumped 9.3%, reinforcing its role as a hedge against fiat weakening. JPMorgan strategists see dollar weakness as short-term sentiment-driven, with stabilization expected as the U.S. economy strengthens. Bitcoin is acting like a liquidity-sensitive risk asset, positioning gold as the preferred dollar diversification asset.

💸 Bitcoin Mining Rally Fueled by Winter Storm and AI Diversification

Bitcoin mining stocks rallied midweek after a severe US winter storm disrupted mining, lowering global hashrate and boosting profits for well-prepared miners. Some increased margins by selling excess power to stressed grids. Additionally, miners are diversifying into AI and high-performance computing, securing major tech contracts and projecting AI revenue to surpass mining income by late 2026, fueling ongoing investor optimism.