Bitcoin Surges Past $87K; Dollar Index Falls to Three-Year Low

Bitcoin has surged to multi-week highs, outperforming other cryptocurrencies and strengthening its role as a hedge against inflation amid a weakening US dollar and rising gold prices. The rally is linked to global trade tensions easing, a sharp decline in the dollar index, and increased institutional demand, as shown by strong inflows into US-listed Bitcoin ETFs. Analysts note Bitcoin's 'digital gold' narrative is gaining renewed traction, with the asset moving in tandem with gold and diverging from traditional equities. Major altcoins such as Ethereum, XRP, and Solana also experienced gains, though they lagged behind Bitcoin's performance. Meanwhile, the crypto sector faces ongoing regulatory scrutiny, including a lawsuit from the Oregon Attorney General labeling XRP an unregistered security, reflecting persistent legal uncertainties for digital assets. The overall crypto market capitalization and trading volumes have risen notably, reflecting renewed investor confidence.