DXY (US Dollar Index)
US dollar strength vs basket of major currencies.
DXY: strong negative correlation with BTC. Rising DXY = capital flees to USD = crypto suffers. Driven by Fed rates. Levels: 90 (weak, bullish risk-on), 105 (strong, headwind), 115+ (crisis 2022).
In plain words
Indicator measuring how strong the US dollar is vs major world currencies. BTC and DXY usually move opposite: strong USD = crypto weakens (capital flows back to USD). Weak USD = crypto rises. That's why crypto investors track DXY almost daily.
Example
Sep 2022: DXY 114 (40-yr high), BTC bottom 17k. Mar 2024: DXY 102, BTC ATH 73.7k. Dec 2024: DXY 109, BTC corrected 100k→90k.
Also known as: DXY, USD index, dollar index