Which cryptocurrencies are most affected by fluctuations in the US dollar and real exchange rate?
Edwards MacMillanDec 26, 2021 · 3 years ago1 answers
In the world of cryptocurrencies, which digital currencies are particularly susceptible to changes in the value of the US dollar and the real exchange rate? How do these fluctuations impact the prices and trading volumes of these cryptocurrencies?
1 answers
- Dec 26, 2021 · 3 years agoAt BYDFi, we have observed that the cryptocurrencies most affected by fluctuations in the US dollar and real exchange rate are often those that have a strong correlation with traditional financial markets. For example, cryptocurrencies like Ripple (XRP) and Litecoin (LTC) have shown a higher sensitivity to changes in the US dollar and real exchange rate compared to other digital assets. This is because these cryptocurrencies have established partnerships with traditional financial institutions and are often used for cross-border transactions. As a result, they are more directly influenced by changes in the value of the US dollar and real exchange rate. However, it's important to note that the cryptocurrency market is highly volatile and subject to various factors, so it's always advisable to conduct thorough research and analysis before making any investment decisions.
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