Many investors only look at the price of Bitcoin or altcoins, but ignore one of the most important indicators of the global market: the DXY.
Understanding it can help you anticipate movements in crypto, even before they happen.
1️⃣ What is the DXY?
The DXY (Dollar Index) measures the strength of the US dollar against a basket of strong currencies, mainly:
Euro.
Japanese yen.
British pound.
Canadian dollar.
Swedish krona.
Swiss franc.
📌 In simple terms:
The DXY tells you if the dollar is strong or weak globally.
2️⃣ Why is the DXY key for Bitcoin and crypto?
Because the crypto market moves with global liquidity, not just internal news.
Historically:
🔺 DXY rises → money goes to traditional safe havens → bearish pressure on crypto
🔻 DXY falls → money seeks alternative assets → crypto strengthens
Bitcoin tends to have an inverse correlation with the DXY.
3️⃣ Clear historical examples
2020–2021: DXY fall → crypto bull run.
2022: strong DXY → bearish crypto market.
2023–2024: DXY retracements → recovery of BTC and ETH.
It's not magic. It's capital flow.
4️⃣ How to use the DXY in practice?
Not to trade minute by minute, but to understand the context.
✔ If the DXY falls slowly → good environment to accumulate
✔ If the DXY rises sharply → more caution
✔ If the DXY is sideways → the market awaits definition
The DXY tells you when the market is comfortable taking risks.
5️⃣ Does the DXY predict the price of Bitcoin?
It doesn't predict, but provides macro context.
Bitcoin can rise with a strong DXY, but it struggles more.
When the DXY falls, the path tends to be easier.
6️⃣ Conclusion
📌 Bitcoin does not move solely on hype.
📌 It moves due to liquidity, monetary policy, and dollar strength.
If you understand the DXY:
you understand the market climate.
you reduce emotional errors.
Tomás makes better decisions.
📘 Mini glossary
DXY: dollar strength index
Liquidity: money available in the system
Inverse correlation: when one rises, the other tends to fall
Macro: global economic factors
🎥 Interesting questions:
❓ "Where can I see the DXY?"
→ On TradingView or any financial platform.
❓ "If the DXY falls, should I buy now?"
→ It's not a unique signal. It's context, not a recommendation.
❓ "Does the DXY affect all cryptos?"
→ Mainly Bitcoin and Ethereum; then the rest.
❓ "Is this useful for beginners?"
→ Yes, because it helps to avoid trading blindly.
❓ "What is more important: DXY or crypto news?"
→ The DXY marks the macro bottom; news accelerates movements.
