Strong USD: Headwinds for Crypto, Opportunity for Delta Neutral?

The current EUR/USD rate of 1.1525 indicates relative USD weakness based on our threshold of 1.08. However, the high USD/JPY at 159.60 signals significant USD strength against the Yen, which tends to negatively impact risk assets like [Bitcoin](/pairs/btc-perp). Crypto traders utilizing [delta](/glossary#delta)-neutral strategies should be cautious of potential downside pressure on Bitcoin and altcoins, potentially leading to higher funding rates for short positions.