The almighty dollar and the once trending DXY is at an important inflection point, with the potential to cripple the blossoming bull market in Bitcoin and the rest of crypto, or propel it to new heights.
The Devastating Impact Of Dollar Dominance
2022 devastated cryptocurrencies and other risk assets due to the seemingly endless dominance of the dollar. The DXY Dollar Currency Index climbed to the highest levels since the inception of Bitcoin.
Because USD is one half of most cryptocurrency trading pairs due to the dollar being the global reserve currency, when the dollar is strong, the other side of the pair weakens.