DXY Drifts: Is the US Dollar Losing Its Grip?
The latest COT report shows a $3.1 billion drop in US Dollar long positions. Investors are rotating back into the Euro and CAD as "peak uncertainty" starts to normalize. For crypto traders, a weakening Dollar Index (DXY) is like pouring jet fuel on the market. Historically, when the greenback takes a breather, "risk-on" assets like BTC and ETH go for a run. We are seeing a massive shift in global liquidity right now. If the DXY continues to slide, expect the "Uptober" vibes to arrive early this year.
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Ref 1: Reuters FX Analysis
Ref 2: The Wall Street Journal