Bitcoin Recovers Above $115,000 Amid a Weak Dollar [Decenter Market Report]

Bitcoin (BTC) has recovered to the $115,000 level amid a weak dollar trend. However, there are observations that breaking through $120,000 is premature due to employment uncertainty and trade variables.

According to CoinMarketCap, a global virtual asset market tracking site, at 8:00 AM on the 7th, BTC is trading at $115,098.60, up 1.03% from the previous day. Major altcoins are also rising. Ethereum (ETH) is trading at $3,683.18, up 2.39%, XRP is at $2.995, up 1.40%, and Solana (SOL) is at $168.42, up 2.85%.



The domestic market is maintaining a steady trend. At the same time, based on Bithumb, BTC recorded 160,159,000 won, down 0.23%. ETH is up 0.99% at 5,122,000 won, XRP is up 0.26% at 4,174 won, and SOL is up 0.04% at 234,400 won.

Analysis suggests that the weakening dollar trend has led to an increase in BTC price.

With the dollar trend turning weak, analysis suggests that BTC price has risen. Typically, BTC has maintained an inverse relationship with the Dollar Index (DXY), which represents the dollar's value against major currencies. According to Bloomberg, the DXY fell to 98.5 on the 6th (local time). This is due to increased betting on the possibility of the Federal Reserve lowering interest rates as the July US employment indicators came in weaker than expected, reducing the dollar's interest rate attractiveness.

However, while the DXY decline is supporting BTC prices in the short term, opinions are prevalent that it is too early to be confident about breaking through $120,000 again. Cointelegraph analyzed that "US employment market uncertainty and global trade tensions are still acting as variables".

The Fear and Greed Index from virtual asset data analysis company Alternative.me dropped 6 points from the previous day to 54, transitioning to a 'neutral' state. This index indicates that the closer to 0, the more contracted the investment sentiment, while closer to 100 indicates market overheating.

Reporter Do Ye-ri