The S&P 500 continues to run high

26 Jun 2023 · 1 min

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In this market commentary, the speaker explains the strong inter‑relationships among the S&P 500, Bitcoin, and the U.S. Dollar Index (DXY). He argues that when the DXY rises, capital shifts into USD, causing both equities and crypto to fall, making Bitcoin and the S&P 500 inversely correlated with the DXY. He sets a DXY target range of 99‑97.8 points; if the index falls to that range, he expects the S&P 500 to reach roughly 5,000 points and Bitcoin to climb to about $35,000. Until that DXY level is achieved, he forecasts the S&P 500 to trade between 4,545 and 4,600 points, with continued upside momentum that will eventually act as a catalyst for Bitcoin’s rise as liquidity moves from equities to crypto. The overall tone is analytical and cautiously optimistic, emphasizing money‑flow dynamics as the driver of price movements.

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S&P 500 is highly, highly correlated to Bitcoin, and it is also highly, highly correlated to the DXY. Because as the US dollar is going up in value, people are going to want to move their assets into USD because that's where they can get a bigger return. Now, what happens when all the big money puts their money into the USD? Well, the stock market goes down. This is why Bitcoin and the stock market is inversely correlated to the DXY. So at the moment, if the DXY does go lower to the target that I have set, which is between 99 points and 97.8 points, a 5,000-point S&P 500 is highly likely if that happens Bitcoin's definitely going to 35K. At the moment, until this point is hit, the target for the S&P 500 is around the 4545 points and around 4600 points. Now, until that target is hit, I do believe that the S&P is going to continue strongly going to the upside, and that is a catalyst for Bitcoin to go strongly to the upside as well, especially once the S&P ranges a little bit up here. That's going to allow the liquidity flow from the stock market into the crypto markets, and you know, that's generally how money flow in the market work.