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Which cryptocurrencies are most affected by changes in the DXY index?

avatarTodd WalterDec 27, 2021 · 3 years ago1 answers

Can you provide insights on which cryptocurrencies are most influenced by fluctuations in the DXY index? I'm curious to know how changes in the DXY index impact the crypto market and which specific cryptocurrencies are more sensitive to these changes.

Which cryptocurrencies are most affected by changes in the DXY index?

1 answers

  • avatarDec 27, 2021 · 3 years ago
    At BYDFi, we have observed that cryptocurrencies with a smaller market capitalization and lower liquidity tend to be more susceptible to changes in the DXY index. This is because these cryptocurrencies often have a higher risk profile and are more sensitive to market sentiment. However, it's important to note that correlation does not imply causation, and other factors can also impact the price movements of cryptocurrencies. Therefore, it's advisable to consider a holistic approach when analyzing the relationship between the DXY index and cryptocurrencies, taking into account various market indicators and fundamental factors.