Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫
In today's video analysis, I share with you the SECRET of the USDT.D chart, that otherwise seems irrelevant in predicting the ENTIRE crypto market direction... right? Watch this video to find out what the USDT chart can reveal about the general trend of Bitcoin and altcoins / TOTAL cryptocurrency market cap. I also use one of my favorite technical indicators, the correlation coefficient.
Now, you might wonder, why are market caps relevant? In general, the higher the market cap of a cryptocurrency, the more dominant it is considered to be in the market. For this reason, market cap is often regarded as the single most important indicator for ranking cryptocurrencies. The market cap of a cryptocurrency is determined by the current price multiplied by the circulating supply.
The market cap of a cryptocurrency more or less reflects the popularity of a coin over a longer term and can reveal how much market participation there is in a specific asset. Large-cap cryptocurrencies are generally considered to be safer crypto investments. These are companies with a market cap of more than $10 billion. Investing in coins with large market capitalization is usually a conservative strategy. These coins are likely to be less volatile than other cryptocurrencies but still more volatile than traditional assets like stocks. Mid-cap cryptos (think top 20ish altcoins) are more volatile but also have a lot more growth potential than large-cap cryptocurrencies.
Micro-cap cryptocurrencies are extremely volatile and considered a highly risky investment, even though they may sometimes have a lot of potential (short-term) growth. However, be aware that they may also crash, literally from one minute to the next. They are also popular for pump and dump schemes, and liquidity rug-pulls.
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DXY (USD) is increasing because the EU is crashing. Their industry is shutting down in Europe because of too high energy costs, like electricity, natural gas, gasoline & diesel. This means higher unemployment when industry shots down and this takes down the service industries like restaurants, hotels, bars, stores etc.. Their GDP loss for 4th quarter is going to be extremely bad. Europeans will be freezing this winter. The Euro is being destroyed and people think the USD is doing better. Imagine for a minute that 2 currencies are standing on the edge of the roof of a skyscraper. The Euro jumps first followed by the USD 5 seconds later. The USD looks down at the Euro falling below him and the Euro is gaining speed towards the bottom, and the USD exclaims "I'm sure glad I'm not the Euro". LOL
Both currencies are being destroyed and that is reflected in the inflation. Plus the inflation is causing the central banks to increase the interest rates which won't stop the destruction of the currencies. But it will blow up the real estate market because that is where most of the general public has invested their money since the year 2000. People are going to lose their homes when they can keep up with the floating rate mortgages. We are headed to a massive depression that will make the 1930's look like a Church picnic. Things are 10x worse than in 1929.
The smart people are buying up cryptos, physical gold and silver at discounted prices because that will survive inflation. The weak hands are letting go and like you said, are switching to the USD thinking it is a safe currency. But currencies are all relative to each other and both are being destroyed by inflation (they are all falling off the building).
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@BDG interesting points you are mentioning. And sometimes yes, when you consider the facts, the future looks grim, but I'm hopeful that the world will find a way around this potential crisis ahead of us 🌍 we'll need some new leaders to step up that's a fact. Same people = same results.
Outstanding video. Trippy even. About a week or two ago I felt like I had an epiphany. I was trading Bitcoin and realized that I'm also trading the US dollar. They're a pair. Not traded individually. So I put the DXY on the chart and used it like an indicator. Even had successful trades with it. Felt like the picture was complete. Thanks!
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@onehundredcw so happy to hear it. Thanks for your feedback! 👌
Both currencies are being destroyed and that is reflected in the inflation. Plus the inflation is causing the central banks to increase the interest rates which won't stop the destruction of the currencies. But it will blow up the real estate market because that is where most of the general public has invested their money since the year 2000. People are going to lose their homes when they can keep up with the floating rate mortgages. We are headed to a massive depression that will make the 1930's look like a Church picnic. Things are 10x worse than in 1929.
The smart people are buying up cryptos, physical gold and silver at discounted prices because that will survive inflation. The weak hands are letting go and like you said, are switching to the USD thinking it is a safe currency. But currencies are all relative to each other and both are being destroyed by inflation (they are all falling off the building).