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IMPORTANT 🚨 FOR THE MARKETS
#DXY = The strength of the US Dollar.
When DXY falls, risk assets generally rally.
When DXY declines:
The dollar weakens.
Global liquidity eases.
Money moves out of safe havens into riskier assets.
BTC, altcoins, Nasdaq, and tech stocks often rise simultaneously.
But an important warning!
This relationship is not 100% automatic.
If DXY drops due to the following reasons, markets are bullish:
Expectations of interest rate cuts.
Increase in liquidity.
Fed easing.
However, if DXY declines due to a crisis:
Recession fears.
Chaos, war, and systemic risk.
In that case, everyone initially rushes into cash, and risk assets may fall again.
FED = interest rate cuts + end of tightening + gradual QE possibility.
Trump = low interest rates.
DXY = compression.
Risk assets = on hold.
I am watching 👌