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  2. /Glossary
  3. /Dollar Index (DXY)
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macro

Dollar Index (DXY)

A measure of the U.

Definition

A measure of the U.S. dollar's value against a basket of six major currencies like the euro and yen. When DXY goes up, the dollar is strengthening and risk assets like crypto tend to fall. Crypto traders watch DXY closely because a weak dollar usually means more money flowing into Bitcoin.

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Related Terms

Fiat Currency

Government-issued money that isn't backed by a physical commodity like gold.

Federal Reserve (Fed)

The central bank of the United States that sets monetary policy.

Monetary Policy

How central banks manage money supply and interest rates to influence the economy.

Basis Point

One hundredth of a percentage point (0.

Bitcoin Treasury Strategy

A corporate strategy of using company treasury funds and debt to buy Bitcoin, popularized by MicroStrategy's Michael Saylor.

CBDC (Central Bank Digital Currency)

A digital form of a country's official currency issued and controlled by its central bank.

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