Spike in Bitcoin Amid U.S. Fiscal Uncertainty and Dollar Decline

Fiscal concerns in the United States have kept the dollar hovering near a two-week low, influenced by a lackluster Treasury bond auction. Meanwhile, the U.S. Congress is making strides toward passing President Donald Trump's extensive tax cut bill, further impacting market sentiment.

This scenario played into the narrative of 'Sell America', affecting both the dollar and Wall Street, especially after Moody's downgraded the U.S. credit rating last week. Investors are exploring other assets, with Bitcoin reaching a new record high, and gold nearing a two-week high.

On the legislative front, the House of Representatives moved forward with Trump's tax bill, a measure expected to amplify the national deficit by $3.8 trillion over ten years. On the foreign exchange front, the dollar weakened against the yen, stirring concerns of a weaker dollar strategy vis-a-vis Asian currencies.

(With inputs from agencies.)