US Dollar Weakness Sparks Bitcoin Optimism as DXY Hits 3-Year Low
The US Dollar Index (DXY) has plunged to its lowest level since April 2022, dropping 10% from its yearly peak to 99.00 amid escalating US-China trade tensions and bond market instability. This significant dollar weakness is fueling optimism in cryptocurrency markets, with analysts speculating about potential Bitcoin price upside as investors seek alternative stores of value.
US Dollar Index Crashes, Boosting Hopes for Cryptocurrency Prices
The US dollar index crashed to its lowest level since April 2022 amid escalating trade tensions between China and the US and ongoing jitters in the bond market. The DXY index, which tracks the greenback against a basket of developed-world currencies, dropped to $99, marking a 10% decline from its highest point this year. China’s retaliatory tariffs against the US, imposing a universal 125% tariff on all US goods entering the country, contributed to the crash. This ongoing decline in the US dollar index may benefit risk assets like Bitcoin (BTC) and altcoins. However, the retaliatory tariffs signal that the trade war will continue, with potential further responses from both sides.
Trump’s Tariff Policies Weaken US Dollar as Bitcoin Surges Past $82K
The US economy is again suffering due to Donald Trump’s new tariff policies. These policies have weakened the US dollar and caused financial market uncertainty. As a result, Bitcoin has gained traction as a safer alternative for investors. The US Dollar Index (DXY) dropped below 100 for the first time in three years, falling over 7% since Trump’s return to the White House. Analysts attribute this sharp decline to Trump’s hawkish trade war with China. Bitcoin, tagged as BTC, surged past $82K during this period, highlighting its potential as a stable investment option in times of economic uncertainty.
Where’s Bitcoin Price Heading Next? $70,000 or $90,000?
Bitcoin’s price is flirting with $82,000 levels amid uncertainty in the US Treasury market, a falling US dollar, and escalating US-China tariff war. Over the past week, BTC has bounced back twice from the support of $75,000 but faces major rejection at $84,000 levels. CryptoQuant analysts stated that Bitcoin, currently priced at $81,515, may encounter resistance.
Pakistan Plans to Allocate Electricity Surplus to Bitcoin Mining
The Pakistani government is seriously considering using its electricity surplus for Bitcoin mining and hosting AI centers. This strategy aims to convert an energy surplus into national economic leverage. According to Bilal Bin Saqib, director of the Pakistan Crypto Council, Pakistan has started discussions with several mining companies to exploit its electricity surplus, particularly in regions with abundant energy capacity. Reuters reported that this initiative is part of a broader strategy aimed at monetizing the underutilized resources of the country. The country faces an energy paradox: while some regions experience electricity shortages, others produce more energy than they consume.
Does Bitcoin Supporter Pierre Poilievre Still Have a Shot at Winning Canada’s Election?
Canadians will vote for a new prime minister this month, with Conservative Leader Pierre Poilievre running against incumbent Mark Carney. Poilievre is a Bitcoin advocate, having received endorsement from Tesla CEO Elon Musk when Bitcoin was near $100,000. However, prediction market MYRIAD shows nearly 74% of users think Carney, who has criticized Bitcoin and favors a central bank digital currency, will win.
