Report 'Which currency looks better, USD or Euros and how it relates to BTC and Altcoins markets?' by Crypto_Steward at 09 Jul 2022
Which currency looks better, USD or Euros and how it relates to BTC and Altcoins markets? Source
DXY (an index of the United States dollar value relative to a basket of foreign currencies) has been in a parabolic since May 2021 and the reasons are quite obvious.
In 2021 it was caused by the FED's super loose monetary policy, when more than 4 trillion of freshly printed greenbacks were injected into all USA denominated assets. That reasoning was altered in November 2021, when markets deliberated for about a month, waiting for the EU monetary authorities reaction on the inflationary tendencies in EU economy.
After it became clear that ECB would likely to follow FED restrictionary policy investors reverted their attention to USD fleeing from EURO on an expectation that a larger ship (USA economy) would go underwater more slowly than a smaller EU boat. Then, of course, Russia-Ukraine war erupted, which sent DXY to the sky.
Those persistent macro-factors are still underlying all traders strategic moves on the Forex markets. Consequently, traders’ reaction on recent big investments houses analytics' commentaries about EU (and the world economy) getting into the recession alongside with USA that what might have caused this chain of buy-impulses we are seeing on currencies markets now.
So if we are looking for the next BTC (and, consequently, other Alts) bullish long-term moves we have first to see that capital holders start to reconsider their current USD-cash-reach assets allocation strategy, which is largely based on prevailing expectations of the upcoming long-term recession.