In the light of the developments in the dollar index in August 2021, we warned of a bear market and drew attention to the inverse correlation between DXY and Bitcoin.
Since the dollar is the reserve currency in the world, every development that will occur here affects all monetary systems.
In products that are valued against the dollar, it may be somewhat overshadowed on the days when the dollar hits the scene. In 2022, we saw the best examples of this by living. As the dollar strengthened, we observed a downward momentum in all risky assets.
With the monetary tightening of the FED, the strengthening dollar index (DXY) rose to 114.75 levels.
We know that the uptrend on the DXY side must end before we can say that the bear market in Bitcoin and risky assets is over. So is the rise over?
Is Dollar Index Running To A New Record?
Today DXY and FED Sharing about Prof. Dr. Özgür Demirtaş is among those who think that the rise in DXY will continue.
So much so that the economist’s prediction is that DXY will break its record in the 2000s. This shows that there is a bullish expectation for DXY above 120.
The move of DXY, which is at 113 levels today, to 120 levels may hit risky assets such as Bitcoin more.
Considering the inverse correlation between DXY and Bitcoin price, we can see that the low risk appetite environment by cryptocurrencies continues for a while if Demirtaş’s expectation comes true.
Demirtaş, who also criticized the FED in his latest posts, stated that they were late in making moves.
Demirtaş’s posts are as follows:
“The biggest mistake of the US central bank was that it was too late in monetary tightening. Interest rate hikes should have started 2 years ago and ended 3-6 months ago, and now the discount should have been talked about.
Since he started late, he is now tightening the belt like a vein. Sledgehammer on inflation!
US interest rates increased by 3% ONLY three percent, look, not 30 percent, but only 3 percent.
What happened then?
Euro Crashed,
Pound Destroyed,
Yen Waving,
Yuan Fragmented,
TL descended to the worst magma layer…At that time, some were writing that the USA would collapse next Thursday.
Let me write my guess:
The index called the Dollar Index will break its record in the 2000s…”
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