Bitcoin Rebound Nears $74,000 as Dollar Index Climbs and U.S. Flows Strengthen

Bitcoin has staged a sustained rebound recently, briefly approaching the $74,000 level with cumulative gains of more than 10% since the outbreak of conflict in the Middle East, according to CoinDesk. This move has come alongside declining risk appetite in global stock markets and a stronger U.S. dollar, with the U.S. Dollar Index (DXY) rising over 1% this week to 99.68 on Wednesday, its highest reading since last November, while Bitcoin and the dollar have often moved in sync since Trump's 2024 election victory and his procrypto policy proposals. On the flows side, demand from U.S. investors has picked up, as the Coinbase Premium Index—which tracks the price spread between U.S. exchanges and offshore markets—rose to 0.0227%, the highest since December last year and a level commonly viewed as signaling increased U.S. capital inflows, CoinDesk reported. Markets are now watching whether Bitcoin can decisively break the key $74,000 resistance, while traders also monitor upcoming U.S. macro events including the February employment report on March 6, CPI data on March 11, and the Federal Reserve interest rate meeting on March 17–18, as well as ongoing uncertainty in the Middle East that analysts warn could again sway market sentiment, according to CoinDesk.