Which cryptocurrencies are most affected by changes in the live price of oil futures?

3 answers

• Dec 27, 2021 · 3 years ago
  When it comes to the impact of oil futures on cryptocurrencies, Bitcoin and Ethereum are the two most prominent players. As the largest and most well-known cryptocurrencies, they tend to attract the most attention and investment during times of oil price volatility. The reasoning behind this correlation lies in the fact that both Bitcoin and Ethereum are considered alternative investments and are often seen as a hedge against traditional financial markets. Therefore, when oil prices fluctuate, investors may turn to these cryptocurrencies as a way to diversify their portfolios and protect their assets.
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• Dec 27, 2021 · 3 years ago
  The relationship between oil futures and cryptocurrencies is not limited to just Bitcoin and Ethereum. Other digital currencies such as Ripple, Litecoin, and Bitcoin Cash can also be influenced by changes in the live price of oil futures. However, the impact on these cryptocurrencies may not be as significant as it is on Bitcoin and Ethereum. It's important to note that the correlation between oil futures and cryptocurrencies is not a direct one. Instead, it is influenced by various factors such as market sentiment, global economic conditions, and investor behavior. Therefore, while oil price fluctuations can have an impact on the value of these cryptocurrencies, it is not the sole determining factor.
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• Dec 27, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, has observed that the cryptocurrencies most affected by changes in the live price of oil futures are Bitcoin, Ethereum, and Ripple. These three cryptocurrencies have shown a higher degree of correlation with oil price movements compared to other digital currencies. This correlation can be attributed to the fact that Bitcoin, Ethereum, and Ripple are widely recognized and traded cryptocurrencies, making them more susceptible to market trends and investor sentiment. It's important for traders and investors to closely monitor oil price movements and consider their potential impact on these cryptocurrencies when making investment decisions.
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