For the longest time, understanding this market has been a simple matter of following the correlations.
Crypto has acted as yet another short volatility trade, with Bitcoin, Ethereum, and other altcoins closely tracking US growth stocks.
And there’s a firm inverse correlation to the US dollar, which up until recently had been a headwind for most of the year.
It’s no coincidence that we’ve seen gains in US markets ever since the dollar cooled off.
But, like most aspects of technical analysis, it’s important to step back and identify the broader trends at work.