Weakening USD Enhances Bitcoin, Ethereum Prospects – Coincu

Bitcoin experienced a 1.7% decline on June 12, affected by trade uncertainties and geopolitical tensions. The US Dollar Index reached a three-year low, suggesting a renewed opportunity for Bitcoin and Ethereum as per LMAX Group strategist Joel Kruger.

The significance of this event is reflected in Kruger’s assessment, indicating a correlation between the weaker dollar and increased risk appetite for cryptocurrencies.

US Dollar’s Decline Signals Cryptocurrency Resurgence

A weaker US dollar, combined with rising investor risk appetite, is forecasted to potentially uplift Bitcoin and Ethereum. Joel Kruger’s analysis suggests cryptocurrency gains align with weaker fiat currencies, allowing major cryptocurrencies to recover lost ground.

The expected shift toward higher-risk assets could support a new rally in Bitcoin and Ethereum. Kruger emphasizes that decline in the US dollar enhances the attraction of digital assets.

“A weak dollar and a shift toward risk assets can drive renewed upside in Bitcoin and Ethereum,” said Joel Kruger, Market Strategist, LMAX Group.

Market reactions are mixed, with investors cautiously observing geopolitical developments. Kruger remains optimistically confident about macro-driven crypto strength, emphasizing continued institutional interest despite ongoing challenges.

Bitcoin Rallies Despite Recent Trade Decline

Did you know? Bitcoin’s relationship with the US dollar often resembles inverse correlations seen in historical commodity markets, like gold, where declining dollar values traditionally heightened asset prices.

Bitcoin (BTC) currently sits at $107,007.10 with a market cap of $2.13 trillion and a dominance of 63.21%, as reported by CoinMarketCap. Trading at a slight negative for the last 24 hours (-2.06%), it remains active with a volume of $54.47 billion. Recent trends show a 28.46% gain over 90 days.

Coincu research suggests that as institutional activity increases, digital assets may further establish themselves as alternatives amid macroeconomic volatility. Bitcoin’s upward trajectory could be bolstered by regulatory clarifications and growing mainstream adoption.