Correlation time, DXY, SPX and XAU, compared to BTC.... Rising DXY, Ranging XAU and falling SPX, we can see from this chart, that BTC is acting in an inverse manner to DXY, and is falling like US stocks, as we enter a new stage of the market and the problem of inflation we are seeing the FED Raise rates and introduce tapering measures, less asset purchasing, since the Covid-19 Pandemic we have seen staggering rise in money printing alot of which was used to buy stocks hence an astronomical bull rally despite a Virus, we are now seeing mean reversion BTC has already hit its old high, and has fallen around $50k from the high. SPX is now in descent and last week we saw an absolute pounding, if FED keep raising rates we could see a bigger demand for the $ in the coming months, I dont believe this is the finish for either crypto or US stocks, when you check SPX we are still above High before Covid, I have a bad feeling we will eventually smash this level and the Stock market will price in a fairer value. All the best in your trading, remember using correlations can lead to a better understanding of the current market.
