The S&P 500 continues to run high

26 Jun 2023 · 1 min

Watch on YouTube

0:59

In this market commentary, the presenter explains a three‑way correlation among the S&P 500, Bitcoin, and the U.S. Dollar Index (DXY). A rising DXY draws capital into USD, which depresses both equities and Bitcoin, creating an inverse relationship between the DXY and the two assets. The analyst sets a DXY target range of 99–97.8 points; if the index falls into that band, a breakout of the S&P 500 toward 5,000 points becomes likely, and Bitcoin could rally to around $35,000. Until the DXY reaches that low range, the S&P 500 is expected to climb to roughly 4,545–4,600 points, providing upward momentum that also supports Bitcoin. The speaker emphasizes that as the S&P 500 consolidates higher, liquidity can flow from equities into crypto, further fueling Bitcoin’s upside.

Chapters

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.