Bitcoin bounces back this week alongside tech stocks after a leak revealed serious establishment fears of crypto “contagion."

Bitcoin has bounced back this week alongside tech stocks after a leak revealed serious establishment fears of crypto “contagion."

The price of bitcoin has risen again this week, reaching levels not seen since November 2024’s bull market peak, and one closely-followed crypto investor says to buy “everything” ahead of a Federal Reserve flip.

Now, as the chief executive of Binance confirms wild speculation that could blow up the bitcoin price, “major” U.S. dollar warnings are setting the stage for a “geopolitical fragmentation megaforce” shock.

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“The preconditions are now in place for the beginning of a major dollar downtrend,” Deutsche Bank analysts George Saravelos and Tim Baker wrote in a note, seen by MarketWatch, adding they expect the euro to rise to $1.30 by the fourth quarter from around $1.20 and to $1.50 in 2025.

Deutsche Bank analysts highlight a huge shift in U.S. trade policy, and a global reassessment of U.S. geopolitical leadership, as key drivers of the dollar downturn. They also noted the dramatic weakening of the dollar in 2024, which has seen it sell-off to lows last seen during the 1980s bull market.

The U.S. dollar has been supported in recent months by Powell’s relatively hawkish approach to interest rates in the face of inflation fears, though U.S. president Donald Trump has pressured Powell to cut rates.

“Given the historical developments of the last few months our EUR/USD forecasts now anticipate the dollar entering a long-winded downcycle,” the Deutsche Bank analysts wrote, who also warned the risk of market dislocations and regime breaks remains high in a world of extreme uncertainty and rapidly shifting policy norms.

The stark warning comes as Goldman Sachs’ head of FX, remarked on the U.S. dollar’s weakness, which is showing no signs of slowing.

“We think it’s here to stay. We are going to have to get used to it. It’s a combination of things. It’s not just the trade war. It’s the fact that the U.S. is running a large twin deficit, which is putting downward pressure on the dollar.”

Crypto traders are watching the bitcoin price for signs of a new bull market peak after a leak revealed serious establishment fears of crypto “contagion.”

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What Happened: The price of bitcoin rose again this week, reaching levels not seen since November 2024’s bull market peak as traders bet the worst of the tariff-induced sell-off is over and good news from the U.S. on an economic slowdown could herald a Federal Reserve pivot to slashing interest rates.

The crypto price smash through $95,000 also came as traders reacted to new data from asset manager CoinShares that showed investors poured $3.4 billion into crypto investment products, including the fleet of U.S. bitcoin spot exchange-traded funds, last week.

This was the third-largest weekly inflow on record and comes at a time when stock market investors have been largely pulling out of equities.

“We believe concerns over the tariff impact on corporate earnings and the dramatic weakening of the U.S. dollar are the reasons investors have turned towards digital assets, which are being seen as an emerging safe haven,” CoinShares head of research James Butterfill wrote in a report.

Crypto prices have come under pressure this year as traders priced in the prospect of a U.S. dollar crash. But, in a pessimistic prediction for the greenback, Deutsche Bank analysts warned the dollar downturn had already begun and was a prelude to a “geopolitical fragmentation megaforce.”

Top Shot: A trader works on the floor of the American Stock Exchange (AMEX) in New York.

What Next: The bitcoin price rally over the last week, adding 20% to bitcoin from its April low, has seen several crypto bulls become increasingly bullish that a new all-time high above $110,000 is imminent.

“Timing the upswing is tricky, but we think it is imminent; we expect a fresh all