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How does the exchange rate between yen and U.S. dollars affect the digital currency market?

avatarKen jhi CarilloDec 26, 2021 · 3 years ago1 answers

How does the exchange rate between the Japanese yen and the U.S. dollars impact the digital currency market? What are the implications of currency exchange rates on the value and trading volume of digital currencies?

How does the exchange rate between yen and U.S. dollars affect the digital currency market?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    As an expert in the digital currency market, I can tell you that the exchange rate between the yen and the U.S. dollars has a direct impact on the market. When the yen strengthens against the dollar, it becomes more expensive for Japanese investors to buy digital currencies priced in dollars. This can lead to a decrease in demand for digital currencies and a subsequent drop in their value. Conversely, if the yen weakens against the dollar, it becomes cheaper for Japanese investors to purchase digital currencies, which can drive up demand and increase their value. Therefore, it is crucial for investors in the digital currency market to closely monitor the exchange rate between the yen and the U.S. dollars to make informed trading decisions.