Part 3/9:
Liquidity, likened to the lifeblood of markets, can have starkly different impacts on assets. In periods of decreasing liquidity—such as those witnessed in 2018 and 2022—cryptocurrency prices often experience drastic downturns. Conversely, in times of increasing liquidity, asset values can soar. Hence, an understanding of the DXY's movements can offer vital insights into future trends in crypto markets.