In the last 4 years, the US dollar has been the subject to two wars and a global pandemic (Covid-19). While all this was taking place the dollar has been weakened, leaving United States economic government arms to figure out ways to strengthen the weakening dollar.
Amid plans to strengthen the USD, Bitcoin has risen to strength all by itself. Analysts report the BTC has been on the winning side of the de-dollarization agenda pushed by the BRICS economic block.
Bitcoin takes the win as the dollar collapses
Based on TradingView data, the U.S. Dollar Index (DXY), which evaluates the dollar’s performance against a selection of major global currencies, experienced a 0.45% decrease from its peak of 105.73 as the week closed at 105.25.
On the other hand, following the announcement of the U.S. unemployment figures, the S&P 500 remained remarkably close to its all-time high, trading within a 1% range. At the close of trading in the week, the Dow Jones experienced a positive increase of 0.85%, with the S&P 500 also showing a gain of 0.51% and the Nasdaq Composite seeing a rise of 0.27%. In the last 24 hours, the price of bitcoin saw a 2.5% increase and was trading at $62,927 at 9:06 a.m. ET.
According to market analysts, the recent increase in U.S. jobless claims has had a negative impact on the dollar. This suggests that the overbought dollar is still susceptible to weaker U.S. data releases. As a result, investors may now be more confident in their belief that the U.S. jobs market is weakening.
Last Thursday, the U.S. Labor Department released the weekly jobless claims report, which revealed an increase in new claims for unemployment benefits. This surge in claims marks the highest level seen in over eight months.
The data was released following a disappointing U.S. jobs report last Friday, which showed that employers added only 175,000 jobs last month, falling short of economists’ expectations for a 243,000 increase.
In the past 24 hours, the GM 30 Index, which tracks the performance of the top 30 cryptocurrencies, has seen a 2.53% increase, reaching a value of 131.96.
Currently, the value of Bitcoin (BTC) stands at $61,412.51, reflecting a 0.8% rise in the past hour and a 0.6% increase since yesterday. The current value of BTC is 3.9% lower than its value a week ago.
The current global crypto market cap stands at $2.38 Trillion, with a slight decrease of -0.78% in the last 24 hours and a significant increase of 105.06% compared to one year ago. BTC’s market cap currently stands at $1.2 Trillion, indicating a 50.45% Bitcoin dominance.
On that note, stablecoin’s market cap stands at $161 Billion, representing a 6.75% share of the overall crypto market cap.
Dollar dominance dwindles as BRICS take over
China and Russia are exerting significant influence to reduce the dominance of the US dollar on the global stage. In a recent press meeting, Chinese President Xi Jinping expressed his belief that the era in which the United States exerted dominance over the world was drawing to a close.
The alliance is empowering developing countries to make trades using their own currencies, thereby bolstering their domestic economies.
The increasing influence of the US dollar is prompting developing countries to shift away from the currency and align themselves with BRICS. Furthermore, the imposition of sanctions by the US has resulted in a significant outflow of funds from developing economies, with a preference for conducting transactions using local currencies.
The development is just the beginning, and BRICS will carry it forward for many more years and decades to come.
