Bitcoin surges past $88,000 as Dollar Index drops below 105
1min read Bitcoin has surged past $88,000, marking a significant milestone in the cryptocurrency market. This surge coincided with a decline in the Dollar Index (DXY) below 105, which had not been seen since mid-November. The DXY's fall below this threshold was a notable event, as it had previously dropped from 103 to below 90 in 2017, a period that also saw a significant rise in Bitcoin's value.
On Wednesday, Bitcoin experienced a substantial increase, rising more than 4% in the afternoon and hovering around $90,300. This surge was driven by a combination of factors, including improving macroeconomic conditions and growing institutional interest in cryptocurrencies. The U.S. manufacturing PMI climbed to 52.7 in February, the highest since June 2022, indicating economic stability and prompting investors to shift towards riskier assets like Bitcoin.
Despite the positive economic indicators, market volatility remained elevated ahead of the upcoming Crypto Summit on March 7. The proposed tariffs on China initially caused uncertainty, but sentiment recovered as optimism about institutional adoption and clearer regulations grew. This rally was not limited to Bitcoin; other major cryptocurrencies such as Ethereum, Solana, and XRP also posted gains of up to 23% in a single day.
Institutional and billionaire investors are increasingly betting on Bitcoin. Mexican billionaire Ricardo Salinas has raised his Bitcoin holdings to 70% of his liquid portfolio, viewing BTC as a hedge against inflation. Meanwhile, Canadian blockchain firm Blockstream is launching three Bitcoin-backed funds to support lending, further highlighting the growing institutional interest in Bitcoin-based financial products.
El Salvador's continued acquisition of Bitcoin, despite pressure from the IMF to curb its purchases, has also reinforced market confidence. The nation's total holdings of 6,101 BTC, worth approximately $534.5 million, underscore its commitment to Bitcoin as a national reserve asset. This strategy has strengthened long-term confidence in Bitcoin, despite the IMF's push for stricter regulations.
