Bitcoin reaches $90K as the Dollar Index slips under 105.

Dollar Index Hits Lowest Level Since November as Bitcoin Rallies

The U.S. Dollar Index (DXY) has slipped below 105, reaching its lowest level since mid-November.

At the start of the year, CoinDesk research highlighted that the DXY was mirroring its movement from Donald Trump’s first term as president. Between September 2024 and January 2025, the index surged from 100 to 110, coinciding with Trump’s re-election. However, after peaking in mid-January, it has steadily declined, now dipping below 105. A further drop to 103 would erase all gains made since Trump’s victory in November.

A strong DXY, typically above 100, tends to weigh on risk assets. However, as the index weakened, Bitcoin (BTC) surged past $88,000, continuing its upward trend.

This pattern is reminiscent of 2017 when the DXY fell from 103 to below 90, coinciding with Bitcoin’s historic bull run to $20,000 by year-end.

Despite these market movements, economic uncertainty persists. Investors remain cautious about tariffs, inflation, and slowing U.S. GDP growth. The upcoming jobs report on Friday is expected to reflect an unemployment rate of 4.0%.

Should the report fall short of expectations, treasury yields could decline further, increasing the likelihood that the Federal Reserve will consider a rate cut at its March meeting.