Glassnode: The fall of the dollar index will trigger a rally in crypto assets
According to analysts, DXY is close to completing the second wave of the upward momentum
08.02.2024 - 09:10
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The material is not an investment recommendation and is published for informational purposes only.
What’s new? The founders of the analytics platform Glassnode Jan Happel and Yann Allemann, who run the blog Negentropic, said that the upcoming movement of the dollar index (DXY), which tracks the value of the dollar against a basket of fiat currencies, can have a significant impact on the crypto market. According to them, DXY is completing a rebound, which will be followed by a significant decline. Analysts added that a low DXY leads to a rally in crypto assets and vice versa, an increase in the indicator leads to a weakening of the crypto market.
What else is known? DXY is often used to assess the strength of risky assets such as cryptocurrencies. Using Elliot Wave Theory, which suggests that price corrections occur in three major waves, analysts say that DXY is close to completing the second wave of the upward momentum. It will be followed by DXY falling to a new local low, which will push cryptocurrencies and other risk assets up.
In January, analyst Michaël van de Poppe predicted the growth of the crypto market capitalization to $2,1 trillion. In his opinion, the growth will occur mainly due to altcoins, and bitcoin expects a period of consolidation. At the same time, the analyst allowed the possibility that in the current market cycle, the cost of the first cryptocurrency will grow to $60 000.
Analyst Jason Pizzino also predicted the coming of the altcoin season. In his opinion, the value of cryptocurrencies will start to grow actively in October 2024.
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