FameEX Hot Topics | Bitcoin Holds Firm as Major Catalysts Point to a Breakout Above $110K

Bitcoin has been experiencing unusually low volatility, remaining within a narrow price range since Wednesday. For six consecutive days, price fluctuations have stayed under 3%, which has led traders to speculate about a potential breakout. Many believe that a weakening US dollar could play a significant role in driving Bitcoin’s price upward, particularly as the US fiscal situation continues to worsen. However, while the US dollar’s movement is drawing attention, several other factors must align for Bitcoin to break above the $110,000 level.

A key point in the ongoing Bitcoin price discussions is the relationship between the US dollar’s strength and Bitcoin’s price movements. Historical data reveals instances where both assets have moved in the same direction, challenging the belief that a weaker dollar is always a precursor to a Bitcoin bull run. For instance, between August 2024 and April 2025, Bitcoin saw gains while the DXY index climbed from 100 to 110, only to pull back when the US dollar retreated to 104. This suggests that Bitcoin’s price is not solely tied to a weaker dollar and can rise independently of dollar fluctuations.

Despite this, many investors still view Bitcoin as a risk-on asset rather than a fully uncorrelated financial alternative. This perception has been reinforced by the Nasdaq 100 reaching an all-time high on June 30, signaling increased investor confidence. As investors rotate out of fixed-income assets and into higher-risk investments, Bitcoin stands to benefit, especially as it gains wider acceptance in global financial markets.

Another critical factor that could push Bitcoin above $110,000 is the resurgence of inflationary pressures. After inflation remained below 2.3% from March through May, following five months of exceeding the Federal Reserve’s target, concerns over inflation are beginning to rise again. Bitcoin, often regarded as an inflation hedge, has shown its ability to rally even in low-inflation environments, as evidenced by its 114% gain in 2024.

Ultimately, Bitcoin’s potential climb above $110,000 could be driven by multiple factors, including heightened risk appetite due to record highs in equities, a resurgence of inflation concerns, and developments like Strategy’s inclusion in the S&P 500. These factors could combine to create the momentum needed for Bitcoin to reach new heights.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.