Bitcoin, currently priced at just over $47,000, looks set to reach $50,000 on October 1st. This seems like a sure thing even as the United States dollar retreated lower after hitting its one-year high. BTC’s inverse relationship with the dollar over the past one month suggested that a weakening dollar could further push BTC higher.
The US Dollar Index (DXY) is a measurement of the dollar’s strength against six foreign currencies, the euro and sterling included. On Thursday the DXY hit 94.50 for the first time since September 28th 2020. However, it retreated after news of increasing US jobless claims against the forecasts of a deadline.
According to labor data released Thursday, the number of jobless claims surged to 362,000 last week. This represents an increase of 11,000 from a week earlier, and 29,000 more than the economists’ 333,000 projection. Due to this, the number of reapplications got stuck at 2.8 million for five weeks in a row. The underwhelming jobs’ report could be an added incentive for investors to temporarily opt for Bitcoin.
As far as markets go, this may signify that the Federal Reserve will delay its decision from November to a later month. This would keep interest rates lower and the dollar’s renewed strength temporary. It was widely expected that the central bank would taper its $120 billion dollar asset purchasing program.
Image Credits: Pixabay
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