Shubham Chavda pfp
Shubham Chavda
@web3am
Watch this if you're planning to sell your crypto. 1) The US Dollar Index (DXY) often strengthens during periods of high interest rates. A higher rate attracts foreign investors seeking better returns, pushing up demand for the USD. 💵📈 2) But when the Fed cuts rates, yields on USD assets decrease, making the currency less attractive. As a result, we often see a sell-off in the dollar. 📉 3) Historically, DXY has shown weakness following rate cuts as investors rotate into riskier assets like stocks, commodities, & crypto. 🪙📊 4) With lower rates, liquidity in the market increases, reducing the safe-haven demand for USD while boosting alternative assets. 5) Keep an eye on the Fed’s next move.
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