Bitcoin’s path toward $120,000 faces significant hurdles despite supportive pressure from a weakening US dollar. Analysts note the cryptocurrency’s price historically moves inversely to the US Dollar Index (DXY), with dollar depreciation typically buoying Bitcoin valuations.
Key economic indicators including US jobs data and inflation metrics heavily influence investor sentiment toward risk assets like Bitcoin. While the dollar’s recent decline creates favorable conditions, Bitcoin has repeatedly struggled to sustain momentum. Earlier price surges faltered above $67,000 before plummeting near $53,000 during market turbulence.
The ICE BofA High Yield Option-Adjusted Spread, a critical gauge of market caution, further complicates Bitcoin’s trajectory. Elevated readings signal heightened investor risk aversion, creating headwinds for cryptocurrencies seeking substantial appreciation.
Persistent US labor market volatility and intensifying global trade tensions amplify economic instability. These factors collectively undermine confidence in Bitcoin’s near-term capacity to achieve the $120,000 threshold, as fundamentals appear overshadowed by macroeconomic uncertainty.