📊 Does the Dollar Index (DXY) Lead Bitcoin? 1. Inverse Correlation • When the U.S. dollar strengthens (DXY goes up), global liquidity tightens, and risk assets like Bitcoin often fall. • When the dollar weakens (DXY goes down), capital tends to flow into non-dollar assets such as Bitcoin, gold, and commodities. 2. Leading Indicator? • DXY is not a perfect leading indicator, but it often reacts quickly to interest rates and liquidity conditions. • This can make it appear to move ahead of Bitcoin. • Example: In 2022, U.S. rate hikes → DXY surged first → Bitcoin dropped heavily weeks later. • But Bitcoin also has idiosyncratic drivers (ETF flows, miner selling, regulations, adoption news), so it doesn’t always follow DXY. 3. Practical Use • Traders often watch for trend reversals in DXY as a