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Tradfi Usdollarstrength Usdollarstrength

Bitcoin

This measures the US dollar's strength against a basket of major currencies (dollar index).

Why it matters

It gauges the macro liquidity and risk backdrop that strongly influences Bitcoin.

How it is built

The dollar's value against a weighted currency basket is tracked over time.

What to watch

A strong dollar is typically a headwind for Bitcoin and risk assets; a weak dollar is a tailwind.

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