Dollar Weakens Amid Rising US Unemployment Claims, Bitcoin and Stocks Benefit

The dollar responded negatively to an increase in US unemployment claims, which had a positive impact on Bitcoin and stocks markets.

Bitcoin is priced at $61,412 with a market capitalization of $1.2 trillion, indicating its dominance in the cryptocurrency market at 50.45%.

Led by China and Russia, BRICS countries suggest that the era of US dominance in the world is nearing its end.

Over the past four years, the US dollar has faced two wars and a global pandemic (COVID-19). During these events, the dollar weakened, prompting US economic arms to devise ways to strengthen the weak dollar.

Amid plans to bolster the US dollar, Bitcoin has strengthened on its own. Analysts note that BTC has been on the winning side of the agenda to ditch the dollar pushed by the BRICS economic bloc.

Bitcoin Wins as Dollar Collapses:

According to TradingView data, the US Dollar Index (DXY), which assesses the dollar’s performance against a selected basket of major world currencies, declined by 0.45% from its peak of 105.73, closing the week at 105.25.

On the other hand, following the announcement of US unemployment figures, the S&P 500 index remained significantly close to its all-time high, trading within a 1% range. At the week’s close, the Dow Jones index showed a positive increase of 0.85%, the S&P 500 index showed gains of 0.51%, and the Nasdaq Composite index saw a rise of 0.27%. In the past 24 hours, the price of bitcoin increased by 2.5%, trading at $62,927 at 9:06 AM EST.

Market analysts suggest that the recent increase in US unemployment claims had a negative impact on the dollar. This indicates that the dollar, in the peak buying zone, remains susceptible to weaker US data releases. As a result, investors are now more skeptical about the weakening US job market.

The US Department of Labor released its weekly jobless claims report last Thursday, revealing an increase in new claims for unemployment benefits. This rise in claims marks the highest level seen in over eight months.

The data was released following last Friday’s disappointing US jobs report, which showed that employers added only 175,000 jobs last month, lower than economists’ expectations of a 243,000 increase.

In the past 24 hours, the GM 30 index, tracking the top 30 cryptocurrencies, increased by 2.53%, reaching a value of 131.96.

Currently, the value of Bitcoin (BTC) is $61,412.51, reflecting a 0.8% increase in the past hour and a 0.6% increase since yesterday. BTC’s current value is down 3.9% from its value a week ago.

The current global market capitalization of cryptocurrencies is $2.38 trillion, with a slight decrease of -0.78% in the past 24 hours and a significant increase of 105.06% compared to last year. The market capitalization of BTC is currently $1.2 trillion, indicating Bitcoin’s dominance at 50.45%.

In this regard, the market capitalization of stablecoins is $161 billion, representing a 6.75% share of the total cryptocurrency market capitalization.

Dollar Dominance Diminishes with BRICS Control:

China and Russia exert significant influence to diminish US dollar dominance on the global stage. In a recent press conference, Chinese President Xi Jinping expressed his belief that the era of US dominance in the world is coming to an end.

The alliance works to enable developing countries to conduct trade using their own currencies, thereby enhancing their local economies.

Read more BlackRock Explores Bitcoin Investment Opportunities Amid Rising Interest

The increasing influence of the US dollar pushes developing countries to move away from the currency and join the BRICS group. Additionally, US sanctions have led to a significant outflow of funds from emerging economies, with a preference for conducting transactions using local currencies.

This development is just the beginning, and the BRICS group will continue it for many years and decades to come.

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