@bridgeninja
When the dollar's flexing—like in a strong DXY cycle—crypto usually takes a hit.
Why? Simple: a stronger USD sucks capital into U.S. assets. Risk-on plays like BTC, ETH, and altcoins see outflows as global investors park funds in “safer” fiat or yield-bearing TradFi instruments.
You’ll often spot it in stablecoin redemptions, lower CEX inflows, and shrinking DeFi TVL. It’s not panic—it’s capital rotation.
Until the dollar cools off, crypto valuations tend to feel the squeeze. Think of it as headwinds for risk assets across the board.
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