• The DXY Dollar Currency Index has hit record highs, which could have a devastating impact on cryptocurrencies.
• The USD is one half of most cryptocurrency trading pairs and when it is strong, the other side weakens.
• A bearish crossover in the DXY could mean continued growth for crypto, while a bullish crossover could lead to further collapse across the asset class.
DXY Hits All-Time Highs
The almighty dollar and the once trending DXY are at an important inflection point with potentially far-reaching implications for Bitcoin and other cryptocurrencies. Since its inception, the DXY Dollar Currency Index has climbed to record heights, causing considerable damage to risk assets such as crypto.
USD Dominance Causes Crypto Weakness
Because half of most cryptocurrency trading pairs involve the USD due to its global reserve currency status, when it strengthens, the value of the other side of the pair weakens. The last few months have provided a much needed relief rally across crypto due to a falling USD. But now there’s concern that momentum might be too heavy for it to defend against.
Bearish Crossover Could Mean Good News For Crypto
If a bearish crossover occurs on the monthly MACD chart for DXY, this would signal bearish momentum strengthening and cause a dramatic decline in its index value. This would be good news for Bitcoin and other cryptos as it could lead to continued growth in their prices. However, if the MACD diverges upward instead then this could mean further collapse across crypto and other assets.
Bull Market In Crypto At Stake
The future of Bitcoin’s bull market and that of many other cryptocurrencies hangs in balance as investors wait with bated breath to see what happens next with DXY’s performance on its monthly MACD chart. If it confirms a bearish crossover then this could be very beneficial for cryptos as their prices may continue rising; however if not then they could suffer even more losses than before due to increased dollar strength.
Takeaways
To conclude, the performance of DXY has huge implications for Bitcoin and many other cryptocurrencies so investors should keep an eye out on how it fares on its monthly MACD chart over time in order to make informed decisions about their investments going forward!