Let’s take a quick look at the DXY’s weekly chart… 👀

For anyone who doesn’t already know, the DXY has a very large effect on the risk asset market, which includes both crypto and stocks. This means any bullish moves for the DXY tend to correspond with bearish moves for the risk asset markets.
With that being said, the DXY is currently looking quite bullish from a price action and momentum confluence perspective. The RSI is showing signs of underlying bullish momentum, while price is showing the early signs of a bull flag forming.
If this bullish momentum continues and the DXY starts to rally throughout 2026, it would lead me to believe risk assets are going to continue heading lower this year, which is also what the cyclical nature of crypto and stocks is suggesting.
This is a sign that could start to bring longer term concern for more downside in the risk asset market over the next 6–8 months. I highly recommend keeping a close eye on this chart…