When DXY up BTC & cryptocurrency down…when DXY down BTC & crypto up
Has anyone noticed a correlation in the DXY & the BTC & cryptocurrency price direction movements? There appears to be a relationship with the relative strength of the US dollar in comparison to all other fiat currencies (DXY), & the price direction of BTC & altcoins. Using the two charts below one can see since 2012 when DXY moves up BTC moves down & also altcoins, & when DXY moves down BTC & cryptocurrency altcoins move upward. If one starts to monitor the DXY & cryptocurrency market movements on a daily basis, one will see on a day-to-day basis this correlation to be valid & reliable.
Not only the DXY variable significantly influences crypto price movements, the tether market cap increase & decrease effects the price movements of crypto prices. As new money is entering the cryptocurrency market the tether market cap increases, & this measures the amount of new money entering the market. When tether market cap decreases this shows money leaving the cryptocurrency market. When tether market cap increases prices of crypto go up, & when tether market cap decreases the prices of cryptocurencies tend to have a downward trend.
Other variables that influences cryptocurrencies price movements is the total amount of volume traded over past 24h, in comparison the total market cap of that particular cryptocurrency. Another significant variable that effects cryptocurrency price directions is the crypto bull & bear market seasons, & where the market is at within these cycles. Understanding the DXY trend, & Tether USDT market cap, cryptocurrency market cycles, & the volume to market cap ratio of individual cryptocurrencies, & how they effect the price trend of cryptocurrencies, helps one calculate buy & sale entry points with high accuracy. NFA DYOR. Happy crypto trading.
