Bitcoin has been accumulating in a range from $33k to $48K since January 2021. Frustrating as that has been, one has to look at the DXY chart to see where it has been during this time. We will do that below. However, the FFR (Federal Funds Rate) is what pushes the dollar index (DXY) up or down. Rates are raising now. 25 bps in March and 50 is expected in May. When the FFR gets high enough, what does that do to the economy (stocks and real estate)? See this next chart below:
Every stock market and real estate crash happens as the FFR gets too high at that time. Also notice how that same FFR top, keeps dropping. The fiat based monetary system has less and less room for higher FFR’s over the last 5 decades. We said last week and still see the FFR limit around 2.5%. It has a long way to go to get to that level. Currently, the FFR is .33%, CPI is 8.5% and Shadow Stats shows real inflation at 17.5% and up to 20%, in some areas in the US. The next chart is the DXY index. It shows a double bottom going back to late 2016: