Bitcoin Reclaims $89K as Dollar Collapse Ignites ‘Hunt Brothers’ Style Squeeze

Bitcoin tore through resistance at $89,000 Tuesday, capitalizing on a rapid devaluation of the U.S. dollar triggered by President Trump’s remarks on currency competitiveness. The move, which dragged the dollar index to a four-year low, has ignited a flight to hard assets, with Bitcoin and precious metals decoupling violently from traditional equities.

Jeff Park, Chief Investment Officer at ProCap, described the setup as a direct echo of the 1980 Hunt Brothers silver squeeze. While Silver prices have verticalized into the $110 range (+53% YTD), Park argues Bitcoin is exhibiting the same "physical shortage" dynamics that sent silver up 700% four decades ago. "This is a physical short squeeze that overtook forecasts by years," Park noted, highlighting that institutional demand is now outstripping the liquid supply on OTC desks.

The setup mirrors 1980: A loss of faith in sovereign debt meets a scarce asset with vanishing float.

The Hard Asset Rotation
The correlation between crypto and precious metals has tightened significantly. As Gold broke a new record above $5,200 per ounce, Bitcoin’s order book depth on the ask side thinned considerably. Market makers are pricing in a sustained period of dollar debasement, forcing a re-rating of assets with capped supplies. Unlike the 2021 rally driven by retail leverage, this move is characterized by spot accumulation, evidenced by the rising premiums on physical silver delivery and immediate custody withdrawals for BTC.

Traders are now eyeing the $92,500 level, a break of which could force derivative shorts to cover, accelerating the squeeze dynamics Park identified.