Home CryptocurrencyBitcoin How does the US dollar index (DXY) affect cryptocurrencies? Follow the Macro Markets

How does the US dollar index (DXY) affect cryptocurrencies? Follow the Macro Markets

by SuperiorInvest

Hosted by Marcel Pechman and airing every Friday at 12pm ET on the Cointelegraph Markets & Research YouTube channel, Macro Markets explains complex concepts in layman’s terms and focuses on the cause and effect of traditional financial events in everyday life. daily crypto activity.

In the show’s inaugural episode airing today, Pechman discusses the impact of the US Dollar Index (DXY) on cryptocurrencies and how an inflation-protected bond exchange-traded fund (ETF) provides a much better estimate of traditional markets’ demand for fixed income.

Viewers will learn how a strong US dollar is not necessarily positive for the US, what inverse correlation is, and why analysts believe the more robust DXY is inherently bearish for cryptocurrencies.

The analyst invites viewers to experiment with the Treasury Inflation-Protated Securities (TIPS) ETF, a government debt instrument that benefits from higher inflation — a better gauge of sentiment on demand for risky assets, including cryptocurrencies.

Marcel explains why the $15 billion Grayscale Bitcoin Trust (GBTC) is trading below 630,000 bitcoins on the stock markets (BTC) value held by the investment instrument. Some analysts argue that Bitcoin’s bull run will only be unsustainable until the indicator flips positive—an argument that Pechman refutes.

At the end of the first Macro Markets show, the analyst simply explains what a hawkish US central bank is, how interest rate hikes affect the economy and ultimately crypto markets. This segment was specifically created for traders looking for simple and direct relationships between complex macroeconomic events and their impact on the markets.

If you are looking for exclusive and valuable content from leading cryptoanalysts and experts, be sure to subscribe Cointelegraph Markets & Research YouTube Channel. Join us for Macro Markets every Friday at 12pm ET.

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