Bitcoin’s return to $ 120 may have to wait despite the weakness of the dollar star-news.press/wp

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Bitcoin (BTC) has historically preserved a counter -relationship with the US dollar index (DXY), which tracks the power of the dollar against a basket of major foreign currencies.

While this link turns over time, the Bitcoin decrease less than $ 114,000 on Friday coincided with DXY climbing to its highest level in more than two months.

Merchants are now watching for Bitcoin to restore a brand of $ 120,000 as the US dollar was reflected and began to show signs of weakness.

DXY fell to 98.5 on Wednesday after failing to restore the level of 100 on Friday. The US job report has prompted the weakest of the month of July merchants to increase the bet on multiple discounts in interest rates by the Federal Reserve, undermining the return of the dollar return, According to To Bloomberg.

Reuters also male Inflationes as the United States imposed a new import tariff on dozens of commercial partners, a step that can raise local prices and more monetary policy of pressure.

The weak US dollar can enhance Bitcoin, but the CAP Reserves Residence

The US dollar can be the most softening of the Bitcoin price, however the opposite may occur if investors expect an economic slowdown or avoid risks for any reason.

For example, between June and September 2024, DXY decreased from 106 to 101, but Bitcoin has repeatedly failed to get more than $ 67,000 and eventually decreased to $ 53,000 by early September.

One of the methods of analysts is to provide market feelings in tracking the high spread of ICE BOFA, which has been modified, and is a measure of the request of additional investors at risk -free rates to hold low -class corporate bonds.

This proliferation includes credit and liquidity risks, making it a widely used agent for risk appetite. Top reading signals indicate caution on the market, while low reading indicates that investors are more willing to risk.

The proliferation increased for a short period in August and September 2024, coinciding with the weakness of the US dollar and low bitcoin prices. Recently, it decreased sharply to 2.85 by late July 2025 after its peak was 4.60 in April. This decrease in the Bitcoin rally corresponds to its lowest level at 74,500 dollars on April 7, confirming how improved credit spirits can support risk assets.

Related to: Bitcoin Steam may still have for $ 250,000 this year: Tom Lee from Fundstrat

The total American companies ’bond market is $ 11.4 trillion of assets, According to Sifma research, and its impact on the economy is great.

Top spread means that companies face greater costs when re -financing current debt or issuing new bonds. High capital costs can reduce profit expectations, which may lead to a negative reactions in investor morale and stock evaluation.

The high borrowing costs of BTC may stop now

If the prevalence of the highly modified Ice Bofa increases, traders may transfer money to short -term US Treasury bonds or search for higher returns abroad, both of which can weaken the dollar.

Currently near 3, the difference is sitting near the moving average for 200 days, indicating that there is no very optimistic or pessimistic market.

Currently, it seems too early to offer the last DXY decline as a clear indication that Bitcoin will return $ 120,000 anytime. The uncertainty in the conditions of the American labor market and the impact of global trade tensions, especially the technology sector dependent on imported artificial intelligence data processing units, is still in influencing short -term expectations.

This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.