According to The Kobeissi Letter, the US Fed Trade Weighted Real Broad Dollar Index is trading near its 40-year high, reflecting the dollar's strong performance against 26 major trading partner currencies (source: The Kobeissi Letter, June 2, 2025). This elevated level, adjusted for inflation, signals potential overvaluation, which may influence global capital flows and risk sentiment. For crypto traders, a strong dollar often puts downward pressure on digital assets like Bitcoin and Ethereum, as investors favor safer fiat holdings. Monitoring the index is crucial for anticipating liquidity shifts and volatility in both forex and crypto markets.

According to The Kobeissi Letter, the US Fed Trade Weighted Real Broad Dollar Index is currently trading near a 40-year high, reflecting significant strength against a basket of 26 major trade partner currencies (source: The Kobeissi Letter, June 2, 2025). This elevated dollar valuation, measured on an inflation-adjusted basis, indicates an overvalued USD, which historically has pressured risk assets, including cryptocurrencies. Traders should note that persistent dollar strength often leads to capital outflows from crypto markets, as investors seek safety in the greenback. Monitoring the index’s movements is crucial for anticipating shifts in Bitcoin and altcoin trading volumes due to macroeconomic pressures.

According to The Kobeissi Letter, the traditional correlation between the US Dollar Index ($DXY) and 10-year Treasury yields has broken down since April 2nd, 2025. Despite a 27 basis point rise in the 10-year note yield to 4.43%, the US Dollar Index has fallen by 5.2%, reaching its lowest level in three years (source: The Kobeissi Letter on Twitter, June 2, 2025). This divergence is significant for cryptocurrency traders, as a weaker dollar historically supports Bitcoin and altcoin prices by driving capital into non-fiat assets. The breakdown in this relationship signals a potential shift in global risk appetite, making crypto market movements more sensitive to macroeconomic changes.

According to Mihir (@RhythmicAnalyst) on Twitter, the DXY (US Dollar Index) is showing signs of a bounce following a 5-month correction period (source: Mihir, Twitter, May 27, 2025). For crypto traders, this development is highly relevant since a stronger dollar often applies downward pressure on major cryptocurrencies such as Bitcoin and Ethereum. Historically, DXY uptrends have correlated with short-term crypto market pullbacks, making this bounce a key signal for traders to monitor for potential volatility and trend reversals in digital assets.

According to Michaël van de Poppe (@CryptoMichNL), the US Dollar Index has experienced a clear technical rejection, indicating a likely continuation of its downward trend. Historically, similar declines in the dollar have correlated with increased momentum and bullish price action in altcoin markets (source: Twitter/@CryptoMichNL, May 20, 2025). Traders should monitor the dollar's movement as sustained weakness could drive capital flows into altcoins, potentially triggering significant rallies across major crypto assets.

According to The Kobeissi Letter, the US Dollar Index ($DXY) has reached a new 52-week low, weakening nearly 10% since the onset of the trade war (source: The Kobeissi Letter, May 5, 2025). This decline in the dollar makes USD-denominated gold more attractive and affordable for foreign investors, increasing gold's appeal as a hedge against currency risk. Traders are observing gold's strong correlation with tariff announcements, positioning it as a leading indicator for trade-related volatility. This trend offers actionable insights for forex and commodity traders seeking to capitalize on shifts in USD and gold price movements.

According to The Kobeissi Letter, the US Dollar Index ($DXY) has reached a new 52-week low, declining by nearly 10% since the onset of the trade war. This significant drop in dollar value has made USD-denominated gold more affordable for foreign investors, resulting in increased gold demand and price action. Traders should note that gold is serving as a leading indicator for tariff impacts, with its price movements closely tracking currency fluctuations and trade policy developments (source: @KobeissiLetter, May 5, 2025).

According to The Kobeissi Letter, the 1-month correlation between the S&P 500 ETF (SPY), the popular bond ETF (TLT), and the US Dollar Index (DXY) has surged to 0.2 points, reaching the highest level in at least six years (source: The Kobeissi Letter, April 28, 2025). This marks a significant reversal from a previous negative correlation of -0.3, signaling a potential shift in market behavior. Traders should note that higher correlations across equities, bonds, and the dollar may reduce diversification benefits and could indicate increased risk-on or risk-off moves impacting all major asset classes simultaneously. This development warrants close monitoring for portfolio hedging and risk management strategies.

According to The Kobeissi Letter, as the Nasdaq 100 drops over -2%, gold prices have surged by +$100/oz. Meanwhile, the US Dollar Index ($DXY) has fallen below 100 for the first time since September 2024. This volatility suggests that if equities revisit their lows, gold could potentially rise well above $3,500/oz. Such movements are crucial for traders analyzing precious metals and currency markets, highlighting a potential shift in asset allocation preferences.

According to The Kobeissi Letter, the Nasdaq 100 has dropped over -2% as volatility returns to the market, sparking a significant rise in gold prices by $100/oz. Concurrently, the US Dollar Index ($DXY) has dipped below 100 for the first time since September 2024, creating potential for gold to surge well above $3,500/oz if equities continue to decline.

According to The Kobeissi Letter, both the S&P 500 and the US Dollar Index have experienced a rare simultaneous decline of -6.5% and -3.5% respectively since January 31st, 2023. This parallel drop in both major financial indicators has not been seen since 2008, indicating a significant market event that traders should closely monitor.

According to The Kobeissi Letter, the S&P 500 and the US Dollar index have experienced a rare simultaneous decline, with decreases of -6.5% and -3.5% respectively since January 31st. This tandem movement is notable as the last occurrence of such magnitude was in 2008. Traders should be cautious as similar historical patterns suggest potential market volatility. [Source: The Kobeissi Letter]

According to The Kobeissi Letter, the US Dollar Index ($DXY) fell by 3.5% last week, marking the second-largest drop since the 2020 pandemic. This decline positions the index for its third consecutive monthly decrease, primarily due to the Euro's 4.7% strengthening.

According to Trader_XO, the DXY (US Dollar Index) has shown significant movement, indicating potential trading opportunities. The tweet includes a visual representation of this movement, suggesting traders should monitor the DXY closely for short-term trading strategies.

According to IntoTheBlock, Bitcoin's correlation with the S&P 500 is currently notably high, contrasting with its low correlation with the US dollar index. This pattern is aligned with the observed crypto market weakness following the recent US tariffs news, suggesting that Bitcoin's price movements are increasingly influenced by equity market trends rather than currency fluctuations.