Dollar Index Slips to Lowest Level Since November as Bitcoin Climbs
The U.S. Dollar Index (DXY) has dropped below 105, reaching its weakest level since mid-November.
At the beginning of the year, CoinDesk research indicated that the DXY was tracing a path 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, since peaking in mid-January, it has steadily declined, now falling below 105. A further dip to 103 would erase all the gains it made since Trump’s November victory.
Historically, a strong dollar—reflected in a DXY above 100—tends to put downward pressure on risk assets. However, with the index losing ground, Bitcoin (BTC) has surged past $88,000, continuing its bullish run.
A similar pattern unfolded in 2017 when the DXY dropped from 103 to below 90, aligning with Bitcoin’s rally to $20,000 by December of that year.
Despite these market movements, economic uncertainty remains a key concern. Investors are closely watching inflation, tariffs, and signs of slowing U.S. GDP growth. Additionally, Friday’s jobs report is expected to confirm an unemployment rate of 4.0%.
If the report shows weaker-than-expected job growth, treasury yields may continue their decline, increasing the likelihood of a Federal Reserve rate cut at its March meeting.
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