HomeBitcoinAnalysts believe Bitcoin is benefiting from the decline of the US dollar

Analysts believe Bitcoin is benefiting from the decline of the US dollar

-


Dollar Reacts Negatively to U.S. Jobless Claims, Boosting Bitcoin and Equity Markets

The U.S. Dollar Index (DXY) experienced a 0.45% decline following an increase in U.S. jobless claims, leading to a boost in bitcoin and equity markets, according to analysts. The S&P 500 traded near its record high, with the Dow Jones up by 0.85%, the S&P 500 gaining 0.51%, and the Nasdaq Composite rising by 0.27%. Bitcoin also saw a 2.5% increase, trading at $62,927.

Analysts attribute the dollar’s decline to softer U.S. data releases, indicating a cooling labor market that could prompt the Federal Reserve to cut rates sooner. This expectation of a rate cut, coupled with a weaker dollar, may drive investors towards riskier assets like equities and cryptocurrencies.

However, analysts caution that a prolonged dollar downturn could negatively impact credit markets and risk assets. They advise investors to monitor signs of greater growth weakness that could affect risk assets, including cryptocurrencies.

The recent increase in jobless claims and the disappointing U.S. jobs report have fueled the narrative of a slower U.S. jobs market, further supporting the case for a potential Fed rate cut. The GM 30 Index, representing the top 30 cryptocurrencies, has also seen a 2.53% increase in the past 24 hours.

Overall, the market dynamics indicate a shifting landscape influenced by U.S. economic data and the potential for policy changes by the Federal Reserve. Investors are advised to stay informed and vigilant in navigating the evolving market conditions.

LATEST POSTS

Analyst Jason Pizzino Indicates Ethereum is Poised for an Upside Move

Analyst Predicts Ethereum (ETH) May Be Gearing Up for Upside Swing Crypto analyst Jason Pizzino predicts Ethereum (ETH) may be gearing up for a significant...

Top 12 Bitcoin and Crypto Casinos for June 2024

Top Bitcoin Casinos for June, 2024 As the popularity of cryptocurrency continues to rise, so does the demand for online Bitcoin casinos. These casinos offer...

Michael Saylor predicts Bitcoin will reach $10M per coin, offering ‘economic immortality’

Michael Saylor Predicts Bitcoin to Reach $10 Million Per Coin: A Look at Corporate Immortality and Economic Pseudoscience Michael Saylor, the executive chairman and co-founder...

In its Latest Roadmap Update, Tectum Unveils Mobile App Release, Ivy Tree Consensus, and Public Blockchain TestNet

Tectum Unveils Latest Roadmap Update Featuring SoftNote Wallet Mobile App Launch Tectum Unveils Ambitious Roadmap Update, Including SoftNote Wallet Mobile App Launch Mahe, Seychelles-- Tectum, the...

Most Popular