Traditional Finance and Crypto Market Interactions

One of the biggest external forces shaping Bitcoin and altcoin prices is the U.S. Dollar Index (DXY)—a measure of the dollar’s strength against major currencies. When the DXY rises, crypto often struggles. When it falls, digital assets tend to gain momentum.

Are cryptocurrencies like the rebellious teenagers of the financial world, or are they just another suit-wearing, Wall Street-approved assets in disguise? For years, traders have debated whether crypto moves to its own chaotic rhythm or if it secretly follows the stock market like a shadowy sidekick.

If you've ever watched your crypto portfolio swing harder than a toddler on a sugar rush, you might be wondering what exactly is pulling the strings.

It’s not just market sentiment or moon memes. It’s usually interest rate hikes and inflation—the economic power duo that can turn bullish dreams into bearish realities.