What is Dollar index (DXY)?
The dollar against a basket of currencies; a stronger dollar is usually a headwind for crypto.
Crypto is priced in dollars, and a rising dollar tightens global conditions. The inverse relationship is loose but persistent over weeks.
It is one of the few macro series that is free, timely and comparable across cycles, which is why it appears in so many crypto commentaries.
Related terms
- Risk-on / risk-offMacro
Whether investors are adding or removing risk; crypto usually trades as a risk asset.
- Interest rateMacro
The central-bank policy rate; higher rates tend to pull money out of risk assets.
- Bitcoin dominanceBasics
Bitcoin's share of the total crypto market cap, used as a rough risk-appetite gauge.