$B The DXY U.S. Dollar Index just broke above 105. The market’s first reaction is that if the dollar is strong, risk assets will weaken. But there’s an upside-down twist to this common-sense notion: DXY rising doesn’t necessarily mean it will immediately drain liquidity from the crypto market; what you really need to watch is the offshore U.S. dollar borrowing rates and stablecoin premiums.
If the DXY keeps pushing higher, but the USDT/USD premium instead narrows, that suggests offshore dollars aren’t actually tight, and the macro pressure on crypto may not be as severe as people think for now. For the moment, all we can say is that the DXY is a warning light, not a verdict—so we still need to see how the Federal Reserve’s messaging is shaped next week.
Have you been reducing your position to hedge risk lately, or are you adding on pullbacks?
#BTC #ETH #米一刀
If the DXY keeps pushing higher, but the USDT/USD premium instead narrows, that suggests offshore dollars aren’t actually tight, and the macro pressure on crypto may not be as severe as people think for now. For the moment, all we can say is that the DXY is a warning light, not a verdict—so we still need to see how the Federal Reserve’s messaging is shaped next week.
Have you been reducing your position to hedge risk lately, or are you adding on pullbacks?
#BTC #ETH #米一刀