Bitcoin Could Bounce Back Amid Dollar Weakness, Says Grayscale
CryptoNewsTerminal Staff04 Sep, 2024
Bitcoin Could Bounce Back Amid Dollar Weakness, Says Grayscale
The recent weakness of the U.S. dollar could provide a tailwind for Bitcoin (BTC), according to a report by Grayscale. "Continued dollar weakness and a dovish Fed should be supportive of BTC," the report says. "Bitcoin competes globally with the U.S. dollar as a store of value. A dovish Fed weakens the dollar's competitive position and should benefit non-dollar assets like bitcoin." The report also notes that heightened volatility returned to financial markets in August, pressuring crypto market caps. "A key risk to market caps is the rising unemployment rate," the report adds. "As such, this week's U.S. nonfarm payrolls and unemployment rate are worth watching."
