The Hidden Correlation Between Dollar Strength and crypto market
Hello Traders 🐺
Maybe you’ve asked yourself this question: Why is it so hard to figure out exactly when the financial markets are about to pump or crash?
And how can I predict and prepare before it actually happens?
Because usually, people realize we’re in a bull or bear market when it’s already too late — when we’re halfway through the move. And as you probably know, the biggest opportunities always happen at the bottom, like now — when everyone is bearish, scared of recession, or talking about trade wars (which in my opinion is just a distraction).
If you know even a little about economics, you’d realize that most policies are made to strengthen markets — not to destroy them.
So why did we experience things like recessions or events like Black Monday?
The answer is simple: Recession is a normal and even healthy part of any economy. It resets prices, clears bubbles, and restores balance. Imagine a world where prices just keep going up forever... at some point, your purchasing power disappears. Inflation, in moderation, is part of a healthy economy — but when it turns into hyperinflation, it becomes a silent thief.
📊 But Why Am I Saying All This?
Because today, we’re going to look at the correlation between the DXY (Dollar Index) and TOTAL2 (Crypto Total Market Cap excluding BTC).
You might be wondering:
Why TOTAL2? Why not just talk about BTC?
If you’ve been following my ideas, you know I’ve been calling for an upcoming Altcoin Season.
Right now, we’re in the BTC phase. BTC is doing its thing — and everyone knows it’s likely to go higher. There’s no need to overhype the obvious.
But the real story is: while BTC is dominating, altcoins are bleeding — most of them are sitting at their ATL levels against BTC. That’s where the real opportunity is.
💵 Why the DXY?
If you read my previous DXY idea, you already know that deflationary assets like BTC and GOLD move inversely to the Dollar.
Every time we enter a QT cycle (a.k.a. Dollar Season), we see liquidity being drained, inflation being fought off, and markets getting crushed.
But here’s the alpha:
Every time the DXY crashes → crypto explodes.
Especially altcoins — because they are inherently riskier than BTC and react more aggressively to new liquidity entering the system.
Let me break it down 👇
DXY crash in 2020 → Altseason
DXY rise in may 2021 → Major crypto crash
Now → DXY breaking below a critical support line... 👀
If this breakdown holds and the Fed confirms the shift to a QE-friendly policy, we’re likely heading toward another massive crypto bull market.
Also — if you zoom in, there’s a clear bull flag forming on TOTAL2.
If DXY shows more weakness and Fed starts cutting rates, this flag might explode to the upside.
I hope you enjoyed this idea and as always, never forget our golden rule:
🐺 Discipline is rarely enjoyable — but almost always profitable 🐺
🐺KIU_COIN🐺
Maybe you’ve asked yourself this question: Why is it so hard to figure out exactly when the financial markets are about to pump or crash?
And how can I predict and prepare before it actually happens?
Because usually, people realize we’re in a bull or bear market when it’s already too late — when we’re halfway through the move. And as you probably know, the biggest opportunities always happen at the bottom, like now — when everyone is bearish, scared of recession, or talking about trade wars (which in my opinion is just a distraction).
If you know even a little about economics, you’d realize that most policies are made to strengthen markets — not to destroy them.
So why did we experience things like recessions or events like Black Monday?
The answer is simple: Recession is a normal and even healthy part of any economy. It resets prices, clears bubbles, and restores balance. Imagine a world where prices just keep going up forever... at some point, your purchasing power disappears. Inflation, in moderation, is part of a healthy economy — but when it turns into hyperinflation, it becomes a silent thief.
📊 But Why Am I Saying All This?
Because today, we’re going to look at the correlation between the DXY (Dollar Index) and TOTAL2 (Crypto Total Market Cap excluding BTC).
You might be wondering:
Why TOTAL2? Why not just talk about BTC?
If you’ve been following my ideas, you know I’ve been calling for an upcoming Altcoin Season.
Right now, we’re in the BTC phase. BTC is doing its thing — and everyone knows it’s likely to go higher. There’s no need to overhype the obvious.
But the real story is: while BTC is dominating, altcoins are bleeding — most of them are sitting at their ATL levels against BTC. That’s where the real opportunity is.
💵 Why the DXY?
If you read my previous DXY idea, you already know that deflationary assets like BTC and GOLD move inversely to the Dollar.
Every time we enter a QT cycle (a.k.a. Dollar Season), we see liquidity being drained, inflation being fought off, and markets getting crushed.
But here’s the alpha:
Every time the DXY crashes → crypto explodes.
Especially altcoins — because they are inherently riskier than BTC and react more aggressively to new liquidity entering the system.
Let me break it down 👇
DXY crash in 2020 → Altseason
DXY rise in may 2021 → Major crypto crash
Now → DXY breaking below a critical support line... 👀
If this breakdown holds and the Fed confirms the shift to a QE-friendly policy, we’re likely heading toward another massive crypto bull market.
Also — if you zoom in, there’s a clear bull flag forming on TOTAL2.
If DXY shows more weakness and Fed starts cutting rates, this flag might explode to the upside.
I hope you enjoyed this idea and as always, never forget our golden rule:
🐺 Discipline is rarely enjoyable — but almost always profitable 🐺
🐺KIU_COIN🐺
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
🐺 Discipline is rarely enjoyable ,
But almost always profitable 🐺
TElEGRAM CHANNEL : t.me/KIU_COIN
_____________________________________
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.