Dollar weakness boosts Bitcoin hopes, but macro risks could delay $120K

Key Points

1. Bitcoin's drop below $114,000 coincided with the US Dollar Index (DXY) climbing, but a weaker dollar later provided some support.

2. A weaker US dollar can boost Bitcoin, but recession fears and market sentiment indicators like the ICE BofA High Yield Option-Adjusted Spread may limit gains.

3. The ICE BofA spread spiked in 2024, aligning with Bitcoin's price drops, but its recent decline matched Bitcoin's rally from its April low.

4. Higher borrowing costs and uncertainty in the US labor market could hinder Bitcoin's short-term price movement toward $120K.

5. Global trade tensions and macroeconomic risks add uncertainty to Bitcoin's price outlook despite the potential support from a weaker dollar.