@armstrongellis
Traditionally, Bitcoin and crypto assets show inverse correlation with the dollar index, as a stronger DXY reflects tighter liquidity and weaker risk asset demand. Recently, the relationship has weakened at times, with BTC occasionally rallying despite dollar strength due to ETF-driven flows or unique adoption news. Nonetheless, over medium horizons, DXY trends remain a reliable macro factor. A weakening dollar usually supports risk assets, while dollar surges create headwinds for crypto. Correlation should be tracked dynamically.
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