📉 BTC vs DXY: the dollar takes charge, Bitcoin takes a hit
Over the past 3 months, the two charts tell the same story in reverse 👀
🔹 DXY: from ~100 in early September to 103.4 (+3.45%), its highest levels in months
🔹 BTC: from over 80K to ~64.5K in November
Why is the dollar surging?
🔹 Hotter-than-expected inflation: October’s CPI beat expectations for the 3rd month in a row
🔹 A strong labor market: 165K jobs added versus 65K expected
🔹 The result: markets are betting on a Fed rate hike in December (~88% probability of +25 bps), with further hikes possible afterward
What’s the link to BTC?
Higher rates, a stronger dollar, less liquidity for risk assets. Bitcoin is often the first to take the hit 📉
⚠️ Beware of oversimplifications: the inverse correlation isn’t stable, and the DXY is just one factor among many (ETF flows, liquidations, sentiment).
What to watch: the Fed’s December meeting (25 or 50 bps?) and the DXY’s reaction around its resistance levels 👀
And you, is the DXY part of your checklist before trading BTC?
#btc #DXY #Macro $BTC
Over the past 3 months, the two charts tell the same story in reverse 👀
🔹 DXY: from ~100 in early September to 103.4 (+3.45%), its highest levels in months
🔹 BTC: from over 80K to ~64.5K in November
Why is the dollar surging?
🔹 Hotter-than-expected inflation: October’s CPI beat expectations for the 3rd month in a row
🔹 A strong labor market: 165K jobs added versus 65K expected
🔹 The result: markets are betting on a Fed rate hike in December (~88% probability of +25 bps), with further hikes possible afterward
What’s the link to BTC?
Higher rates, a stronger dollar, less liquidity for risk assets. Bitcoin is often the first to take the hit 📉
⚠️ Beware of oversimplifications: the inverse correlation isn’t stable, and the DXY is just one factor among many (ETF flows, liquidations, sentiment).
What to watch: the Fed’s December meeting (25 or 50 bps?) and the DXY’s reaction around its resistance levels 👀
And you, is the DXY part of your checklist before trading BTC?
#btc #DXY #Macro $BTC
