Weak Dollar Dey Support Bitcoin, But Macro Risks Dey Delay $120K
Bitcoin dey often move the opposite way to US Dollar Index (DXY). After weak US job report and tariff bad matter wey make inflation worry, DXY drop go 98.5, Bitcoin small small climb but e still no pass $120,000. When dollar soft, fit make Bitcoin climb, but risk fear wey ICE BofA High Yield Option-Adjusted Spread measure, fit stop di gains. Di spread don fall from 4.60% for April reach around 2.85%, e still dey help Bitcoin rally from $74,500 low, but people still dey cautious for credit market. With US trade wahala, shaky labor data and ongoing big macro risk, traders fit dey fear to push Bitcoin pass $120,000 soon. Traders suppose dey watch DXY trend and credit spread to sabi how Bitcoin fit move short term.
Neutral
Di article talk say even though weaker US dollar dey usually support Bitcoin, past DXY decline dem (mid-2024) no fit maintain rallies because say credit spreads high and people dey avoid risk. Right now, ICE BofA High Yield OAS dey near im 200-day moving average, plus ongoing US trade wahala and labor market wahala add extra difficulty. These mix of things mean traders no go likely push Bitcoin pass $120K without clear better credit condition and steady economic data, making short-term outlook neutral.