How does the U.S. Dollar Index (DXY) impact cryptocurrencies? Watch Macro Markets

Published at: Feb. 26, 2023

The show Macro Markets, hosted by Marcel Pechman, which airs every Friday at 12 pm ET on the Cointelegraph Markets & Research YouTube channel, explains complex concepts in layman’s terms and focuses on the cause and effect of traditional financial events on the day-to-day crypto activity.

In the show’s inaugural episode airing today, Pechman discusses the impact of the U.S. Dollar Index (DXY) on cryptocurrencies and how the inflation-protected bonds exchange-traded fund (ETF) provides a much better estimate of traditional markets’ demand for fixed income.

Viewers will learn how a strong United States dollar is not necessarily positive for the U.S., what is an inverse correlation, and why analysts believe a more robust DXY is inherently bearish for cryptocurrencies. 

The analyst invites viewers to experiment with the Treasury Inflation-Protected Securities (TIPS) ETF, a government debt instrument that benefits from higher inflation — hence, a better sentiment gauge on demand for risk assets, including cryptocurrencies.

Marcel explains why the $15-billion Grayscale Bitcoin Trust (GBTC) trades on stock markets below the 630,000 Bitcoin (BTC) value held by the investment vehicle. Some analysts claim that the Bitcoin bull run will be unsustainable only until this indicator flips positive — an argument that Pechman refutes.

To close the first Macro Markets show, the analyst explains in simple terms what a hawkish U.S. Federal Reserve is, how interest rate increases impact the economy and, ultimately, crypto markets. This segment has been specially crafted for traders looking for simple and direct relations between complex macroeconomic events and their impacts on markets.

If you are looking for exclusive and valuable content provided by leading crypto analysts and experts, make sure to subscribe to the Cointelegraph Markets & Research YouTube channel. Join us at Macro Markets every Friday at 12:00 pm ET.

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