The dollar index (DXY), which measures the power of US dollar in international markets, has followed a wavy course in recent months. The index fell to 103 levels after increasing to 110 levels in January. This decline led to mobility in crypto money markets compared to similar situations in the past years. Bitcoin $89,748.06With a decline in DXY, it exceeded the level of $ 88,000, exceeding a strong rise.
Effect on the fluctuations and markets in the DXY index
The DXY index made a strong rise in the beginning of 2024. With the strengthening of the probability of re -election of Donald Trump, it rose from 100 to 110 between September 2024 and January 2025. However, since the mid -January, it declined and fell to 103 levels.
The decline of DXY is associated with uncertainties in the US economy. The risk of erasing the gains in November changed the risk perception of investors. The index, which is over 100 levels, is generally considered strong, while remaining at these levels can put pressure on risky assets. DXY’s entering a decline trend is considered a factor that supports risky assets.
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This mobility created uncertainty in global markets. The US Federal Reserve (FED) interest policy, inflation figures and employment data directly affect investors’ decisions. The direction of DXY leads to significant changes in both traditional markets and crypto money markets.
Effect on Bitcoin and Crypto Money Market
The decline of DXY to 103 levels resulted in a remarkable rise in Bitcoin. The leading crypto currency increased over $ 88,000 and performed strongly. This movement brought to mind a similar trend in 2017. At that time, Bitcoin rose to $ 20,000 in December 2017, when DXY fell from 103 to 90.
The frequently seen movements in crypto money markets with DXY is the attention of investors. Macroeconomic concerns for the US economy and the possibility of interest rate reduction of the FED may lead to new price movements in the markets. The employment data to be announced on Friday is expected to remain at 4.0 %. However, if there is a data below expectations, there may be a decrease in government bond returns and the probability of interest to the Fed may increase.
Investors continue to determine their strategies in line with macroeconomic developments and the direction of DXY. Past data show that harsh decreases in DXY can cause strong rise in Bitcoin. However, the volatile structure of the markets requires care to be careful in investment decisions.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
