Dollar Index Falls Below 105, Bitcoin Surges Past $88K

The U.S. Dollar Index (DXY) has dropped below 105, marking its lowest point since mid-November.

Earlier this year, CoinDesk research suggested that the DXY was following a pattern similar to its movement during Donald Trump’s first term. Between September 2024 and January 2025, the index climbed from 100 to 110, coinciding with Trump’s re-election. However, after peaking in mid-January, it has been on a steady decline, now falling below 105. A further drop to 103 would wipe out all gains made since Trump’s November victory.

Typically, a strong dollar—represented by a DXY above 100—pressures risk assets. However, as the index weakened, Bitcoin (BTC) surged past $88,000, reinforcing its bullish momentum.

This trend echoes 2017, when the DXY fell from 103 to below 90, coinciding with Bitcoin’s meteoric rise to $20,000 by the end of the year.

Despite these developments, economic uncertainty remains high. Concerns over tariffs, inflation, and slowing U.S. GDP growth continue to loom. Meanwhile, Friday’s upcoming jobs report is expected to confirm an unemployment rate of 4.0%.

If the report falls short of expectations, treasury yields could slide further, increasing the chances that the Federal Reserve may consider a rate cut in its March meeting.