FameEX Hot Topics | Bitcoin Remains Stable as Key Catalysts Set the Stage for 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%, raising speculation among traders about a potential breakout. Many believe that a weakening US dollar could play a significant role in driving Bitcoin’s price upward, especially as the US fiscal position continues to deteriorate. However, while the US dollar’s movement is attracting attention, several other factors must align for Bitcoin to break above the $110,000 threshold.

A key topic 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, contradicting the idea that a weaker dollar is a surefire indicator of a Bitcoin bull run. For instance, between August 2024 and April 2025, Bitcoin saw gains even as the DXY index climbed from 100 to 110, only to retreat when the US dollar fell back to 104. This suggests that Bitcoin’s price is not entirely dependent on a weaker dollar and can rise independently of dollar fluctuations.

Many investors continue to view Bitcoin as a risk-on asset rather than a fully uncorrelated financial alternative. This perception has been influenced by the Nasdaq 100 reaching an all-time high on June 30, signaling rising investor confidence. As investors rotate out of fixed income and into higher-risk assets, Bitcoin stands to benefit, especially as it gains traction in broader financial markets.

Another significant factor that could push Bitcoin above $110,000 is the reemergence of inflationary pressures. Following a period of inflation below 2.3% from March through May, after five months of running above the Federal Reserve’s target, inflation concerns are beginning to rise again. Bitcoin, often touted as an inflation hedge, has shown its ability to rally even in low-inflation environments, as demonstrated by its 114% gain in 2024.

Ultimately, Bitcoin’s potential climb above $110,000 could be driven by multiple factors. These include increased risk appetite due to record highs in equities, the resurgence of inflationary concerns, and potential developments like Strategy’s inclusion in the S&P 500. These factors, when combined, could create the favorable momentum needed to propel Bitcoin to 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.