The USD: Why has it been going up?

The derivatives market and our intuition tend to have big conflicts. If the money printer is diluting the dollar and it is at the same time strengthening we need to get deeper into this issue. This parabolic run for the USD may be motivated by the fact that the market needs to rely on collateral for derivatives operations. And the rhythm of recovery of the economy of the USA is faster than others.

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In the UK, the central bank admitted that they are starting to fall into a recession and they also have the problem of inflation. So it is harder for them to deal with the situation. And the crypto-space is following its “de-risk” process. For example, USDT.D, the USDT dominance is right now in an all time high:

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The hedging and de-risking process justify why the USD index has been going up and cryptos going so deeply down. There are also other factors, but today we wanted to focus on these important issues. We will keep updating you via our LinkedIn page.