Recent shifts in key market indicators have drawn attention to the Dollar Index ($DXY), the SPX, and Bitcoin’s dominance in the cryptocurrency sphere. While the $SPX faces challenges amid a strengthening dollar, the job market’s latest snapshot from JOLT’s data presents a Goldilocks scenario. Meanwhile, Bitcoin’s supremacy in the crypto realm continues to ascend.
DXY Chart
Dollar Index Update As anticipated last week, the Dollar Index (DXY) maintains its upward momentum, now surpassing $104. Despite favorable liquidity and a considerable easing of financial conditions in November—equivalent to a substantial 90 bps of rate cuts—the $SPX struggles to sustain its upward trajectory, likely influenced by the strengthening Dollar.
JOLT’s Job Openings Report Recently released JOLT’s Job Openings data, registering at 8.733 million, falls notably below the 9.3 million consensus. This figure is perceived as a Goldilocks number by the market—neither too robust nor too weak. This decrease suggests a substantial shift that the Federal Reserve aims for, seeking to balance the labor market by aligning demand and supply.
However, the moderate decline doesn’t raise alarms about imminent disruptions in the labor market, garnering a positive reception from the market at large.
BTC.D Weekly
BTC Dominance Outlook Historically, Bitcoin often leads market cycles, initiating a swift recovery before altcoins follow suit post-BTC consolidation. This pattern is evident in the current cycle, with BTC dominance (BTC.D) inching towards the 55% threshold. Resistance levels are anticipated at 57% and 60%. Until the likely approval of Spot BTC ETFs in early January, BTC dominance is expected to persist.
Anticipating the probable approval of Spot BTC ETFs in early January, BTC’s pace may decelerate, signaling a potential downtrend for BTC dominance.
BTC.D Weekly Trends The weekly trends of BTC dominance are indicative of its evolving trajectory, presenting insights into the broader market movements in the crypto sphere.
