3 Things Can Benefit Bitcoin, What Are They?

Liputan6.com, Jakarta The top cryptocurrency by market value, Bitcoin has weakened more than 16 percent since reaching a high of USD 31,000 or equivalent to IDR 465.4 million (assuming exchange rate of IDR 15,015 per US dollar) two months ago.

However, the price of Bitcoin has increased by almost 60 percent year-to-dateoutperformed the Nasdaq, Wall Street’s tech-heavy index, which was up only 38 percent.

Even though Bitcoin is under pressure, there are a number of things that could benefit Bitcoin and drive up its price. Various parties believe that if these three things happen, Bitcoin will greatly benefit.

Weaker Dollar and Reduced Bond Market Volatility

The dollar index, which tracks the greenback’s value against major currencies, fell 1.2 percent to 102.30 last week, posting its third straight weekly loss.

The losing streak has reversed the more than 50 percent bounce seen in the previous three weeks, which has, in part, weighed on the crypto’s price.

“Every dollar dips is good for bitcoin (and vice versa). That’s why BTC and risk assets experience the strongest gains during dollar bear markets,” said crypto intelligence firm Jarvis Labs in a weekly blog post, quoted from CoinDesk, Tuesday (20/6/2023) .

The Federal Reserve (The Fed) kept interest rates steady between 5 percent and 5.25 percent last week, snapping a 15-month cycle of rate hikes that pushed the dollar higher and rattled risk assets last year.

The central bank left the door open for further rate hikes over the coming months, but analysts are not sure that will warrant talks.