“DXY Strength Index: Explanations for the Unbelievable Bitcoin Dump”

Many are looking for esoteric explanationspulling out characters from the Simpsonextent of the bull run and other almost magical factors to explain the unbelievable dump Of Bitcoin and of the entire cryptocurrency sector which returned to their levels within a few minutes pre run Of Today. A ride that we had analyzed during the afternoon indicating what were the assumptions that drove it.

Now there is a graph which, at least in our opinion, clearly explains what happened and what the conditions are for both the race and the braking. And you have to look in the direction of US dollarconcerns about the US banking system and also what is happening at the federal level with the debt ceiling.

Rumors of opening to an increase in the ceiling itself, recovery of the index DXYwhich measures the strength of the US dollar compared to other currencies and comes down a castle made, now it’s easy to say in hindsight, of carta.

DXY up, Bitcoin down, albeit by 10

Bitcoin historically has the habit of moving by multiplying by 10 what happens on markets that generally move in the opposite direction. And this is what happened during the evening. Dollar recovery triggered after i minimal touched at 15.00 about Italian time, shorts that mount and off, the wall collapsed, held up with difficulty by the bulls.

All with a certain delaywhich now in hindsight seems to be as obvious and clear as the light of the rising sun every morning, but which apparently took many by surprise.

The graph we report, which is the DXY and therefore the dollar strength index would seem to be sufficiently explanatory. Of course, then they also contributed technical factors that our specialists will not fail to analyse, but in the opinion of who is writing to you now, the fulcrum of the situation is right here.

The dollar is not dead yet

As far as the voltage on the markets make you think otherwise, actually the dollar it is more alive than ever, and as much as some countries are trying to do otherwise, it will remain center stage, both for the pure financial markets and for those of the things that matter, mainly energy commodities.

The road will still be long – even if all human things come to an end sooner or later.

Gold down too

Today we also launched the parallel with gold. And even in the decline the parallel has unfortunately been maintained. At the time of writing gold is trading at -0,40% compared to yesterday’s prices and at an important distance from the prices touched during the afternoon.

Important distance that for gold – which is not a cryptocurrency – means the1%. And from here we will start again, with Bitcoin which at the time of writing has lost all of today’s gain and is trading around 27.800$. No, all is not lost, just as a few hours ago not all the world’s problems, including the monetary one, had been resolved.