💵 **The Dollar's Great Split**
Two dollar indices are telling opposite stories:
- **Fed’s Broad Dollar Index**: 40-year high.
- **DXY Index**: Down 8.4% this year.
Both are correct—they measure different realities. This divergence has only happened twice before: in **1933 and 1985**. Both times were followed by a **~40% dollar devaluation**.
**What’s Happening?**
The dollar is bifurcating into:
- **The Network Dollar**: global FX rails, reserves, and stablecoin backing.
- **The Trade Dollar**: overvalued and hurting U.S. exports.
**Smart Money Is Positioning:**
- Fund managers hold their **lowest dollar allocation in 20 years**.
- Central banks have bought **3,220 tonnes of gold in three years**.
Historically, every major dollar overvaluation has corrected—on average by over **40%**. This split isn’t a glitch; it’s a signal.
Resolution will come through **Fed policy, crisis, or tariffs**. When it does, it will reshape global markets.
#USD #Dollar #Macro #Gold #BTC
