As Bitcoin soars to $90K, the Dollar Index falls under 105.

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.