Dollar Dominance and Crypto
Connection between USD dominance and crypto market — DXY index, BRICS, stablecoins.
The US dollar remains the global reserve currency — 60% of world reserves, oil denominated in USD, SWIFT system. Crypto markets are deeply intertwined with this dynamic.
DXY (US Dollar Index):
•Measures USD strength against currency basket (EUR, JPY, GBP, CAD, SEK, CHF)
•DXY rises → crypto usually falls
•DXY falls → crypto usually rises
•2022: DXY at 20-year peak → crypto -75%
•2023: DXY fell → crypto recovery
Stablecoins and dollar:
•USDT, USDC = digital dollar
•~$150B in USD stablecoins
•Dollar expansion beyond US banking system
•El Salvador, Nigeria, Argentina — crypto as dollar alternative
•EU and Chinese regulators worried about USD expansion
BRICS and de-dollarization:
•Russia, China, India, Brazil, South Africa + new
•Goal: reduce USD dependency in trade
•BRICS coin/currency — discussion
•Crypto as neutral layer for trade settlements?
Federal Reserve and Bitcoin:
•Fed money printing 2020-2021 → BTC narrative "hedge"
•Fed rate hike → liquidity dry → BTC falls
•Bitcoin doesn't "hedge" inflation consistently
•Better hedge: short-term rises with risk-on appetite
What Serbia needs to know:
•RSD pegged to EUR, EUR falls vs USD → RSD loses vs USD