🔹Key points of the news:
Bitcoin usually has an inverse relationship with the US dollar index (DXY); when the dollar weakens, Bitcoin usually rises 📉➡️📈.
Recently, Bitcoin fell below $114,000 when the dollar index reached its highest level in two months 📉💲.
After the dollar index began to decline recently, there are expectations for Bitcoin to rise towards $120,000 🔄🚀.
The weak US jobs report for July increased expectations for interest rate cuts by the Federal Reserve, which weakened the dollar 🇺🇸📉.
But a weak dollar alone is not enough, as there are significant economic risks such as global trade tensions and high borrowing costs 🌍⚖️💸.
The increased borrowing costs for American companies mean pressure on their profits, which could lead to caution among investors 🏢💰⚠️.
The risk measure in the risk-related bond market (ICE BofA High Yield Spread) shows that investors are still hesitant to take risks 📊🤔.
So, while a weak dollar supports Bitcoin, economic risks and uncertainty may delay Bitcoin's achievement of $120,000 in the near future ⏳🚫💵.
Summary:
A weak dollar gives us a positive boost for Bitcoin 💪🚀, but the global economic situation, trade tensions, and high borrowing costs keep investors cautious ⚠️, which could prevent Bitcoin from jumping to $120,000 at the moment ⏸️💲.
📍Source: cointelegraph